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 =
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| 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 month. What is the estimated total cost for this operation (to the nearest whole number)?
$
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