A sample of provided a sample x C Consider the following hypothe X MindTap - Cengage Learning X + .com/static/nb/ui/evo/index.html?deploymentId=5996522231691402582784701280&elSBN 9780357131596&id=2135544620&snapshotid=4059447& CENGAGE MINDTAP A11 R01 Review Assignment 11 14. 15. 16. 27 Relaur Q Search this co- Hint(s) Check My Work (2 remaining) An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of production volumes and total cost data for a manufacturing operation. Production Volume (units) Total Cost ($) 450 3800 550 4200 650 4900 700 5800 750 6700 850 7600 The data on the production volume and total cost y for particular manufacturing operation were used to develop the estimated regression equation ŷ = -1110.20 + 10.04. a. The company's production schedule shows that 800 units must be produced next month. Predict the total cost for next month. ŷ* = (to 2 decimals) b. Develop a 98% prediction interval for the total cost for next month. 8 t-value Spred (to 2 decimals) (to 3 decimals) (to 2 decimals) Prediction Interval for an individual Value next month ) (to whole number) c. If an accounting cost report at the end of next month shows that the actual production cost during the month was $6,000, should managers be concerned about incurring such a high total cost for the month? Discuss. Based on one month, $6,000 is not should cause concern. outside the upper limit of the prediction interval. A sequence of five to seven months with consistently high costs Icon Key F4 F3 Q Search 114 F5 ※ F6 * www X Hint(s) Check My Work (2 remaining) PrtScn Home End PgUp PgDn F7 F8 F9 F10 F11 F12 % Λ & 3 4 5 6 7 8 9 C 1 9/3