Strategic Management relates a study in economies of scale in the paper industry. the data is found in the following table.x5060738290215230260y1.81.61.51.250.950.600.500.54Here x is the weighted average machine size in tons per hour, and y is the employee-hours per ton.A. Determine the best-fitting line using least squares and the square of the correlation coefficient.The best-fitting line is W(x) = The square of the correlation coefficient is r2 = .B. Is there an advantage to using a large machine? Pick the correct answer.The smaller the machine, the less the employee-hours.The larger the machine, the more the employee-hours. The larger the machine, the less employee-hours.The larger the machine, the employee-hours do not change.C. What does this model predict the weighted average machine size will be is the employee-hours per ton is 1.00? (Round to the nearest ton.)The machine will make________ tons for 1 employee-hour per ton.

The least squares method is commonly used in forecasting to make predictions based on historical…

Answered: . Determine the best-fitting line using…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Strategic Management relates a study in economies of scale in the paper industry. the data is found in the following table.

x	50	60	73	82	90	215	230	260
y	1.8	1.6	1.5	1.25	0.95	0.60	0.50	0.54

Here x is the weighted average machine size in tons per hour, and y is the employee-hours per ton.

A. Determine the best-fitting line using least squares and the square of the correlation coefficient.
The best-fitting line is W(x) =

The square of the correlation coefficient is r² = .

B. Is there an advantage to using a large machine? Pick the correct answer.

The smaller the machine, the less the employee-hours.

The larger the machine, the more the employee-hours.

The larger the machine, the less employee-hours.

The larger the machine, the employee-hours do not change.

C. What does this model predict the weighted average machine size will be is the employee-hours per ton is 1.00? (Round to the nearest ton.)
The machine will make________ tons for 1 employee-hour per ton.

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