Which of the following statements related to cost estimation methods is false? a. The three methods determine a slope and an intercept. b. The most complex method of cost estimation is the high-low method. C. None of the given answers. d. The least-squares regression method is the most accurate and reliable method to de compared to scatter-graph plot and high-low methods. The low-high method is LUsed to derive an estimated line of cost hehavior hy granhical pe here to search hp 10 & 7 V # 3 4 5 6 8 R Y 19 2.

A study of 86 savings and loan associations in six northwestern states yielded the following cost function. C� = 2.38 - 0.006153Q� + 0.000005359Q2�2 + 19.2X1�1     (2.86)   (3.08)   (3.68)   (2.96)   where C� = average operating expense ratio, expressed as a percentage and defined as total operating expense ($ million) divided by total assets ($ million) times 100 percent. Q� = output; measured by total assets ($ million) X1�1 = ratio of the number of branches to total assets ($ million) Note: The number in parentheses below each coefficient is its respective t-statistic. Which of the variable(s) is (are) statistically significant in explaining variations in the average operating expense ratio? (Hint: t0.025,70=1.99�0.025,70=1.99.) Check all that apply. Q�   Q2�2   X1�1     What type of average cost-output relationship is suggested by these statistical results? Quadratic   Cubic   Linear     Based on these results, what can we…

= A certain seed and fertilizer company compiled the following estimates for its operations. Capacity per period is sales of $170,000. (a) the revenue function (b) the cost function (a) Write an algebraic expression for the revenue function. Assume a selling price of $1. Total Revenue = (Type an expression using x as the variable. Do not include the $ symbol in your answer.) Sales Fixed cost Total variable cost Total cost Net income $39,300 63,840 $152,000 103,140 $48,860

Luke used regression analysis to fit quadratic relations to monthly revenue, TR, and total cost, TC, data with the following results, where Q is quantity. TR = -0.008Q² + 32Q TC = 0.005Q² +2.2Q + 10 The range of profitable demand is from Blank 1 units (round up) to Blank 2 units (round down). Note on rounding to whole number: The rounded values of 6,543.71 are 6,544 (round off or simply round), 6,543 (round down), and 6,544 (round up). Blank 1 Blank 2 Add your answer Add your answer

Price and cost ($ per 1,000-gallon unit) Return t A municipal water utility employs quasi-fixed capital inputs-the water treatment plant and distribution lines to homes-to supply water to 20,000 households in the community it serves. The figure below shows the cost structure of this utility for various levels of water service. Quantity of water consumption is measured in 1,000-gallon units per month. AQFC is the average quasi-fixed cost curve, and LAC is long-run average cost. Long-run marginal cost, LMC, is constant and equal to $4 per 1,000-gallon unit. The inverse demand equation is P= 24 -0.0004Qd 10 14 MR Quantity (1,000-gallon units per month) Quasi-fixed capital inputs cost per month is $ LAC AQFC LMC D

A study of 86 savings and loan associations in six northwestern states yielded the following cost function. C = 3.12 - 0.006768Q + 0.000005359Q2 +21.1X1 (3.12) (2.61) (2.89) (2.96) where C = average operating expense ratio, expressed as a percentage and defined as total operating expense ($ million) divided by total assets ($ million) times 100 percent. Q = output; measured by total assets ($ million) X1 = ratio of the number of branches to total assets ($ million) Note: The number in parentheses below each coefficient is its respective t-statistic. Holding constant the effects of bank branching (X1), what is the level of total assets that minimizes the average operating expense ratio? $1,262.92 million $1,558.81 million $631.46 million $460.99 million What is the average operating expense ratio for a savings and loan association with the level of total assets determined in the previous part and 1 branch? 1.17% 3.15% 1.02% 5.63% What is the ratio with 10 branches instead? 5.93% 1.47%…

A recent engineering was given the job of determining the best production rate for a new type of casting in a foundry. After experimenting with many combinations of hourly production rates and total production cost per hour, he summarized his findings in (table 1). The engineering then talked to the firm’s marketing specialist, who provided estimates of selling price per casting as a function of production output (see table 2). There are 8,760 hours in a year. What production rate would you recommend to maximize total profits per year?  Table 1 Total cost per hr        Casting production per hr $1,000                                  100  $2,600                                  200 $3,200                                   300 $3,900                                   400 $4,700                                    500   Table 2   Selling price / casting  Casting production per hr $20.00                                   100  $17.00                                  200 $16.00…

A company makes solar panels. The company’s revenue function, in dollars, is R(n)=10n , where n is the number of panels produced. The cost function is C(n)=100(2)π/30 . R and C are shown on the graphbelow. a) Estimate from the graph i) the break-even points  ii) the number of panels that should be produced for maximum profit b) Write the equation for the profit function P. c) Graph P. d) Use your graph of P to estimate the number of panels that give maximum profit. e) How would your answers for break-even points and maximum profit change if i) the number of dollars of revenue per panel is increased slightly?  ii) the cost function is  C(n)=100(2)π/35    changed to ? f) What does the number that was changed in part e) ii) represent?

At the profit maximizing level of input use, Which of the following are true? (i) MVP=0 (ii) MVP=MIC (iii) MPP=MVP (iv) MVP=MVIC