A simple curve that often makes a good model for the variable costs of a company, as a function of the number of units produced, X, has the form: y= b₁x+ b₂x^2 b₃x^3 (There is no constant term because fixed costs are not included.) Consider the following table of recorded variable costs versus units produced for some company: *Picture attached below* - Find the best-fit model curve (from above) to the data (i.e., the least squares solution). Sketch your model. - Use your curve to estimate the variable costs for producing 1, 3, 11 and 20 items.
A simple curve that often makes a good model for the variable costs of a company, as a function of the number of units produced, X, has the form: y= b₁x+ b₂x^2 b₃x^3 (There is no constant term because fixed costs are not included.) Consider the following table of recorded variable costs versus units produced for some company: *Picture attached below* - Find the best-fit model curve (from above) to the data (i.e., the least squares solution). Sketch your model. - Use your curve to estimate the variable costs for producing 1, 3, 11 and 20 items.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Question
A simple curve that often makes a good model for the variable costs of a company, as a function of the number of units produced, X, has the form:
y= b₁x+ b₂x^2 b₃x^3
(There is no constant term because fixed costs are not included.)
Consider the following table of recorded variable costs versus units produced for some company: *Picture attached below*
- Find the best-fit model curve (from above) to the data (i.e., the least squares solution). Sketch your model.
- Use your curve to estimate the variable costs for producing 1, 3, 11 and 20 items.
Transcribed Image Text:# units
produced
4
6
8
10
12
14
16
18
Cost
$1.63K
$2.13K
$2.50K
$2.80K
$3.10K
$3.40K
$3.80K
$4.32K
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