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The below data on the production volume x and total cost y (in dollars) for a particular manufacturing operation were used to develop the estimated regression equation ŷ= 1,217.33 + 7.68x. Production Volume Total Cost (units) ($) 3,900 400 450 550 600 700 750 5,100 5,400 6,000 6,400 7,000 (a) The company's production schedule shows that 500 units must be produced next month. What is the point estimate of the total cost (in dollars) for next month? (Round your answer to the nearest cent.) $5057.33 (b) Develop a 99% prediction interval for the total cost (in dollars) for next month. (Round your answers to the nearest cent.) $ X to $ X (c) If an accounting cost report at the end of next month shows that the actual production cost during the month was $6,500, should managers be concerned about incurring such a high total cost for the month? Discuss. Since $6,500 is within the prediction interval, managers should not be ✓ concerned about incurring such a high total cost for one month.

The below data on the production volume x and total cost y (in dollars) for a particular manufacturing operation were used to develop the estimated regression equation ŷ= 1,217.33 + 7.68x. Production Volume Total Cost (units) ($) 3,900 400 450 550 600 700 750 5,100 5,400 6,000 6,400 7,000 (a) The company's production schedule shows that 500 units must be produced next month. What is the point estimate of the total cost (in dollars) for next month? (Round your answer to the nearest cent.) $5057.33 (b) Develop a 99% prediction interval for the total cost (in dollars) for next month. (Round your answers to the nearest cent.) $ X to $ X (c) If an accounting cost report at the end of next month shows that the actual production cost during the month was $6,500, should managers be concerned about incurring such a high total cost for the month? Discuss. Since $6,500 is within the prediction interval, managers should not be ✓ concerned about incurring such a high total cost for one month.

Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
13th Edition
ISBN:9781133382119
Author:Swokowski
Publisher:Swokowski
Chapter7: Analytic Trigonometry
Section7.6: The Inverse Trigonometric Functions
Problem 94E
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The below data on the production volume x and total costy (in dollars) for a particular manufacturing operation were used to develop the estimated regression equation ŷ = 1,217.33 + 7.68x. Production Volume Total Cost (units) ($) 400 450 550 600 700 750 3,900 5,100 5,400 6,000 6,400 7,000 (a) The company's production schedule shows that 500 units must be produced next month. What is the point estimate of the total cost (in dollars) for next month? (Round your answer to the nearest cent.) $5057.33 (b) Develop a 99% prediction interval for the total cost (in dollars) for ne month. (Round your answers to X to $ X nearest cent.) (c) If an accounting cost report at the end of next month shows that the actual production cost during the month was $6,500, should managers be concerned about incurring such a high total cost for the month? Discuss. Since $6,500 is within the prediction interval, managers should not be concerned about incurring such a high total cost for one month.
Transcribed Image Text:The below data on the production volume x and total costy (in dollars) for a particular manufacturing operation were used to develop the estimated regression equation ŷ = 1,217.33 + 7.68x. Production Volume Total Cost (units) ($) 400 450 550 600 700 750 3,900 5,100 5,400 6,000 6,400 7,000 (a) The company's production schedule shows that 500 units must be produced next month. What is the point estimate of the total cost (in dollars) for next month? (Round your answer to the nearest cent.) $5057.33 (b) Develop a 99% prediction interval for the total cost (in dollars) for ne month. (Round your answers to X to $ X nearest cent.) (c) If an accounting cost report at the end of next month shows that the actual production cost during the month was $6,500, should managers be concerned about incurring such a high total cost for the month? Discuss. Since $6,500 is within the prediction interval, managers should not be concerned about incurring such a high total cost for one month.
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