2-a. Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per week. 2-b. Express these estimates in the form Y = a + bX.

Practical Management Science
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Chapter13: Regression And Forecasting Models
Section13.3: Simple Regression Models
Problem 6P: Do the sales prices of houses in a given community vary systematically with their sizes (as measured...
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Exercise SA-5 (Algo) Least-Squares Regression (LO5-11
George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the
company's products, a platinum diving watch, goes through an etching process. The company has recorded etching costs
as follows over the last six weeks:
Week
1
2
3
4
Units
14
11
16
10
12
15
78
Total Etching
Cost
$ 27
20
30
20
25
28
$150
For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost
per week.
Exercise 5A-5 Part 2 (Algo)
2-a. Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per week.
2-b. Express these estimates in the form Y = a + bx.
Transcribed Image Text:Exercise SA-5 (Algo) Least-Squares Regression (LO5-11 George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the company's products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks: Week 1 2 3 4 Units 14 11 16 10 12 15 78 Total Etching Cost $ 27 20 30 20 25 28 $150 For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week. Exercise 5A-5 Part 2 (Algo) 2-a. Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per week. 2-b. Express these estimates in the form Y = a + bx.
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