5. (Sec. 12.1) Suppose that the expected cost (y dollars) of a production run is related to the size of the run (z units) by the equation y = 4000 + 10r. Let Y denote an observation on the cost of a run. Also suppose size and cost are related according to a simple linear regression model. (a) What is the expected cost when the size of the run is 150 units? (b) By how much do you expect the cost to increase, if the size of the run is increased by 10 units? (c) Suppose that the standard deviation of the random error e is $250. What is the probability that the cost of a production run of 150 units will cost more than $6000? (d) Suppose the cost is recorded from a production run of 200 units, and then is also recorded from a different production run of 250 units. What is the probability that the cost of the second production run exceeds the cost of the first by more than $1500?

MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
Question

part d

5. (Sec. 12.1) Suppose that the expected cost (y dollars) of a production run is related to the size of the
run (z units) by the equation y = 4000 + 10r. Let Y denote an observation on the cost of a run. Also
suppose size and cost are related according to a simple linear regression model.
(a) What is the expected cost when the size of the run is 150 units?
(b) By how much do you expect the cost to increase, if the size of the run is increased by 10 units?
(c) Suppose that the standard deviation of the random error e is $250. What is the probability that
the cost of a production run of 150 units will cost more than $6000?
(d) Suppose the cost is recorded from a production run of 200 units, and then is also recorded from
a different production run of 250 units. What is the probability that the cost of the second
production run exceeds the cost of the first by more than $1500?
Transcribed Image Text:5. (Sec. 12.1) Suppose that the expected cost (y dollars) of a production run is related to the size of the run (z units) by the equation y = 4000 + 10r. Let Y denote an observation on the cost of a run. Also suppose size and cost are related according to a simple linear regression model. (a) What is the expected cost when the size of the run is 150 units? (b) By how much do you expect the cost to increase, if the size of the run is increased by 10 units? (c) Suppose that the standard deviation of the random error e is $250. What is the probability that the cost of a production run of 150 units will cost more than $6000? (d) Suppose the cost is recorded from a production run of 200 units, and then is also recorded from a different production run of 250 units. What is the probability that the cost of the second production run exceeds the cost of the first by more than $1500?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 5 images

Blurred answer
Knowledge Booster
Area of a Circle
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, statistics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
Statistics
ISBN:
9781119256830
Author:
Amos Gilat
Publisher:
John Wiley & Sons Inc
Probability and Statistics for Engineering and th…
Probability and Statistics for Engineering and th…
Statistics
ISBN:
9781305251809
Author:
Jay L. Devore
Publisher:
Cengage Learning
Statistics for The Behavioral Sciences (MindTap C…
Statistics for The Behavioral Sciences (MindTap C…
Statistics
ISBN:
9781305504912
Author:
Frederick J Gravetter, Larry B. Wallnau
Publisher:
Cengage Learning
Elementary Statistics: Picturing the World (7th E…
Elementary Statistics: Picturing the World (7th E…
Statistics
ISBN:
9780134683416
Author:
Ron Larson, Betsy Farber
Publisher:
PEARSON
The Basic Practice of Statistics
The Basic Practice of Statistics
Statistics
ISBN:
9781319042578
Author:
David S. Moore, William I. Notz, Michael A. Fligner
Publisher:
W. H. Freeman
Introduction to the Practice of Statistics
Introduction to the Practice of Statistics
Statistics
ISBN:
9781319013387
Author:
David S. Moore, George P. McCabe, Bruce A. Craig
Publisher:
W. H. Freeman