Which of the following is NOT necessarilytrue about the interpretation of the valueof b in the simple linear regressionequation y = a + bx for this problem? *The monthly total costs will increase by $7.6437 for every one-unit increase in theproduction volume.II.Since b> 0, there is a direct relationship between production volume and totalcosts.II.Because b> 1, there is a very strong positive linear relationship betweenproduction volume and total costs.O i and ii onlyO ii onlyiii onlyO ii and iii onlyWhich of the following statements are trueabout the dependent (or response) andindependent (or predictor) variables forthe simple linear model in this problem?Production volume is dependent on total costs.The predictor and response variables are the production volume and total costs,respectively.The total costs can be projected using the simple linear regression equation if theI.II.II.production volume is known.O i and ii onlyi and iii onlyii and iii onlyi, ii, and ii An important application of regressionanalysis is in the estimation of cost. Bycollecting data on volume and cost andusing the least squares method to developan estimated regression equation relatingvolume and cost, one can estimate thecost associated with a particularmanufacturing volume. Consider thefollowing sample of monthly productionvolumes and total costs data for amanufacturing operation for the year 2018.MonthProduction Volume (units)Total Costs ($)January 2018February 20185006,0003504,000March 20184505,000April 20185505,400May 20186005,900June 20184004,000July 2018August 2018September 20184004,2003503,9004004,300October 20186006,000November 20187006,400December 20187507,000

Given : Month Production Volume (units) Total costs January 2018 500 6000 February 2018 350…

Answered: An important application of regression…

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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1. Sue is conducting a regression analysis to predict the amount of salaries expense using the number of employees and the average rate of pay. This type of regression analysis is called a(n) independent regression. linear regression. multiple regression. dependent regression.
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 3,700 450 4,700 550 5,100 600 5,600 700 6,100 750 6,700 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 bị and bo (to 1 decimal). Do not round intermediate calculations. b1 bo Complete the estimated regression equation (to 1 decimal). Do not round intermediate calculations. ŷ = + b. What is the variable cost per unit produced (to 2 decimal)? Do not round intermediate calculations. $ c.…
An important application of regression analysis 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, one can estimate the cost associated with a particular manufacturing volume. Consider the following sample of monthly production volumes and total costs data for a manufacturing operation for the year 2018. Month (2018) Volume of Production (Units) Total Costs ($) Jan 500 6000 Feb 350 4000 Mar 450 5000 Apr 550 5400 May 600 5900 Jun 400 4000 Jul 400 4200 Aug 350 3900 Sept 400 4300 Oct 600 6000 Nov 700 6400 Dec 750 7000 1) Which of the following is NOT necessarily true about the interpretation of the value of b in the simple linear regression equation y = a + bx for this problem? 2) Which of the following statements are true about the dependent (or response) and independent (or predictor) variables for the simple linear model in…
An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of production volumes and total cost data for a manufacturing operation. Production Volume (units) Total Cost ($) 400 3,800 450 4,800 550 5,200 600 5,700 700 6,200 750 6,800 a. Compute b1 and bo (to 1 decimal). bị 7.6 bo 1046.7 Complete the estimated regression equation (to 1 decimal). 1046.7 7.6 b. What is the variable cost per unit produced (to 1 decimal)? 7.6 c. Compute the coefficient of determination (to 3 decimals). Note: report r2 between 0 and 1. 0.9586 What percentage of the variation in total cost can be explained by the production volume (to 1 decimal)? 95.9 d. The company's production schedule shows 500 units must be produced…
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 ($) 400 3,800 450 4,800 550 5,200 600 5,700 700 6,200 750 6,800 a. Compute b1 and bo (to 1 decimal). b1 bo Complete the estimated regression equation (to 1 decimal). + b. What is the variable cost per unit produced (to 1 decimal)? c. Compute the coefficient of determination (to 3 decimals). Note: report r between 0 and 1. What percentage of the variation in total cost can be explained by the production volume (to 1 decimal)? d. The company's production schedule shows 500 units must be produced next month. What is the estimated total…
Weight (lbs.) 173 184 194 214 168 220 188 188 207 167 217 Systolic Blood Pressure 132 143 153 162 154 168 137 149 159 128 166 1. What is the response variable? 2. What is the explanatory variable? 3. What is the equation of the linear regression line? 4. If person's weight is 150, what can we expect the systolic blood pressure to be?
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An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of production volumes and total cost data for a manufacturing operation. Production Volume (units) Total Cost ($) 400 4,400 450 5,400 550 5,800 600 6,300 700 6,800 750 7.400 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 b, and bo (to 1 decimal). Do not round intermediate calculations. bo Complete the estimated regression equation (to 1 decimal). Do not round intermediate calculations. b. What is the variable cost per unit produced (to 2 decimal)? Do not round intermediate calculations. $ c. Compute the…
Situation: The Ipod Touch has been out for two years now and a lot of data has been collected.Relevant Relationship:There is a functional relationship between Price of an IPod Touch,p and Weekly Demand,s.Below is a table of data that have been collected Price,p ,($) Weekly Demand,s ,(1,000s) 150 209 170 205 190 200 210 192 230 177 250 175 A.. Find the linear model that best fits this data using regression and enter the model below(for entry round the linear parameter value to nearest 0.01 and constant parameter to nearest 1)s=T(p)= C. What does the model predict will be the weekly demand if the price of an ipod touch is $172 ? (nearest 100) can you answer these two questions
An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of production volumes and total cost data for a manufacturing operation. Production Volume (units) Total Cost ($) 400 4,300 450 5,300 550 5,700 600 6,200 700 6,700 750 7,300 a. Compute b1 and b0 (to 1 decimal). b. The company's production schedule shows 500 units must be produced next month. What is the estimated total cost for this operation (to the nearest whole number)?
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 ($) 400 4,700 450 5,700 550 6,100 600 6,600 700 7,100 750 7,700 A) Compute b1 and b0 (to 1 decimal)b1 b0 Complete the estimated regression equation (to 1 decimal). = + x B) What is the variable cost per unit produced (to 1 decimal)?$ C) Compute the coefficient of determination (to 3 decimals). Note: report r2 between 0 and 1.r2 = What percentage of the variation in total cost can be explained by the production volume (to 1 decimal)? % D) The company's production schedule shows 500 units must be produced next…

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