An accountant wishes to predict direct labor cost () on the basis of the batch size (x) of a product produced in a job shop. Data for 12 production runs are given in the table below, along with the Excel output from fitting a least squares regression line to the data. Direct Labor Cost Data Batch Size, x 5 62 35 12 Direct Labor Cost, y ($100s) 71 663 381 138 861 145 493 548 251 Labor Cost 1024 435 772 Click here for the Excel Data File 800- + 8 600 400 1000 LaborCost = 18.488 + 10.146*BSize 200 0 83 14 46 0 52 23 100 41 75 Batch Size Line Fit Plot 20 40 60 Batch Size 80 100 a) Calculate by and bo. (Round intermediate steps to 4 decimals places.)
An accountant wishes to predict direct labor cost () on the basis of the batch size (x) of a product produced in a job shop. Data for 12 production runs are given in the table below, along with the Excel output from fitting a least squares regression line to the data. Direct Labor Cost Data Batch Size, x 5 62 35 12 Direct Labor Cost, y ($100s) 71 663 381 138 861 145 493 548 251 Labor Cost 1024 435 772 Click here for the Excel Data File 800- + 8 600 400 1000 LaborCost = 18.488 + 10.146*BSize 200 0 83 14 46 0 52 23 100 41 75 Batch Size Line Fit Plot 20 40 60 Batch Size 80 100 a) Calculate by and bo. (Round intermediate steps to 4 decimals places.)
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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Transcribed Image Text:An accountant wishes to predict direct labor cost (y) on the basis of the batch size (x) of a product produced in a job shop. Data for 12
production runs are given in the table below, along with the Excel output from fitting a least squares regression line to the data.
Direct Labor
Cost, y ($100s)
71
663
381
Labor Cost
Direct Labor Cost Data
Batch
Size, x
5
b1
b0
138
861
145
493
548
251
1024
435
772
200
0
62
35
Click here for the Excel Data File
0
12
83
14
46
52
23
100
1000+ LaborCost = 18.488 + 10.146*BSize
800+
600 +
400+
20
41
75
Batch Size Line Fit Plot
40
60
Batch Size
80
100
(a) Calculate bi and bo. (Round intermediate steps to 4 decimals places.)
Transcribed Image Text:(a) Calculate by and bo. (Round intermediate steps to 4 decimals places.)
b1
b0
(b) Interpret the meanings of bo and b₁. Does the interpretation of bo make practical sense?
b0 is the estimated
b1 is the estimated
when
y-hat=
in
0;
for every 1 unit increase in
(c) Write the least squares prediction equation. (Round your answers to 4 decimal places.)
X
=
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