An important application of regression analysis in accounting is in theestimation of cost. By collecting data on volume and cost and using the leastsquares method to develop an estimated regression equation relating volumeand cost, an accountant can estimate the cost associated with a particularmanufacturing volume. Consider the following sample of production volumesand total cost data for a manufacturing operation.Production Volume (units) Total Cost ($)4003,5004504,5005504,9006005,4007005,9007506,500a. Compute b1 and bo (to 1 decimal).b1boComplete the estimated regression equation (to 1 decimal).%3Db. What is the variable cost per unit produced (to 1 decimal)?c. Compute the coefficient of determination (to 3 decimals). Note: report r2between 0 and 1.12 = c. Compute the coefficient of determination (to 3 decimals). Note: report rbetween 0 and 1.2 =What percentage of the variation in total cost can be explained by theproduction volume (to 1 decimal)?%d. The company's production schedule shows 500 units must be produced nextmonth. What is the estimated total cost for this operation (to the nearestwhole number)?$

Hi! Thank you for the question, As per the honor code, we are allowed to answer one question at a time so we are answering the first one as you have not mentioned which one you are looking for. Please re-submit the question separately for the remaining question.production volume total cost 400 3500 450 4500 550 4900 600 5400 700 5900 750 6500 From the given information the total cost is a dependant variable and production volume is the independent variable. We use excel regression to find the linear regression equation the Excel output is given below. (a) From the above summary table here are the values of b1 and b0, b1= 7.6 b0= 746.6 Here is the regression equation, y^=746.6+7.6x (b) The variable cost per unit produced is $7.6 (c) The coefficient of determination is r2=0.9586≈0.959r2=0.959 The percentage of variation in the total cost can be explained by the production volume is 95.9%.

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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.

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.

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

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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($) 400 4,000 450 5,100 550 5,400 600 6,000 700 6,300 750 7,000 (a) Use these data to develop an estimated regression equation that could be used to predict the total cost for a given production volume. (Round your numerical values to two decimal places.) ŷ = (b) What is the variable cost (in dollars) per unit produced? $ (c) Compute the coefficient of determination. (Round your answer to three decimal places.) What percentage of the variation in total cost can be explained by production…
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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 ($) 400 4,500 450 5,500 550 5,900 600 6,400 700 6,900 750 7,500 a. Use these data to develop an estimated regression equation that could be used to predict the total cost for a given production volume. Do not round intermediate calculations.Compute and (to decimal). Do not round intermediate calculations.Complete the estimated regression equation (to decimal). Do not round intermediate calculations.b. What is the variable cost per unit produced (to decimal)? Do not round intermediate calculations.c. Compute the…
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