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 y = 1,217.33 + 7.68x. Production Volume Total Cost ($) $ (units) 400 Submit Answer 450 550 600 700 750 4,100 4,900 5,400 5,900 6,500 (a) The company's production schedule shows that 650 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.) $6209.33 7,000 (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 $6,700, should managers be concerned about incurring such a high total cost for the month? Discuss. Since $6,700 is within the prediction interval, managers should not be concerned about Incurring such a high total cost for one month. The below data on the production volume x and total costy (in dollars) for a particular manufacturing operation were used to develop the estimated regression equation9-1,217.33 +7.68x.Production Volume Total Cost(units)400450550Submit Answer6007007504,1004,9005,4005,9006,5007,000(a) The company's production schedule shows that 650 units must be produced next month. What is the point estimate of the total cost (in dollars) for next month? (Round youranswer to the nearest cent.)$ 6209 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 s(c) If an accounting cost report at the end of next month shows that the actual production cost during the month was $6,700, should managers be concerned about incurringsuch a high total cost for the month? Discuss.Since $6,700 is within✔✔the prediction interval, managers should not be✔ concerned about incurring such a high total cost for one month.

here X denotes production volume and Y denotes total cost.We also have given a regression equation…

Answered: The below data on the production volume…

College Algebra

7th Edition

ISBN:9781305115545

Author:James Stewart, Lothar Redlin, Saleem Watson

Publisher:James Stewart, Lothar Redlin, Saleem Watson

Chapter1: Equations And Graphs

Section: Chapter Questions

Problem 10T: Olympic Pole Vault The graph in Figure 7 indicates that in recent years the winning Olympic men’s...

See similar textbooks

Related questions

Question

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 y = 1,217.33 + 7.68x. Production Volume Total Cost ($) $ (units) 400 Submit Answer 450 550 600 700 750 4,100 4,900 5,400 5,900 6,500 (a) The company's production schedule shows that 650 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.) $6209.33 7,000 (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 $6,700, should managers be concerned about incurring such a high total cost for the month? Discuss. Since $6,700 is within the prediction interval, managers should not be concerned about Incurring such a high total cost for one month.