Hankuk Electronics started production on a sophisticated new smartphone running the Android operating system in January 2017. Given the razor-thin margins in the consumer electronics indus- try, Hankuk's success depends heavily on being able to produce the phone as economically as possible. At the end of the first year of production, Hankuk's controller, Inbee Kim, gathered data on its monthly levels of output, as well as monthly consumption of direct labor-hours (DLH). Inbee views labor-hours as the key driver of Hankuk's direct and overhead costs. The information collected by Inbee is provided below: Home Insert Page Layout Formulas Month Output (Units) Direct Labor-Hours 2 January 3 February 4 March 684 1,400 492 820 660 875 5 April 6 May 7 June 8 July 9 August 10 September 11 October 12 November 13 December 504 670 612 760 636 765 648 735 600 660 648 695 696 710 672 690 675 700 1. Inbee is keen to examine the relationship between direct labor consumption and output levels. She decides to estimate this relationship using a simple linear regression based on the monthly data. Verify that the following is the result obtained by Inbee: Regression 1: Direct labor-hours = a + (b x Output units) Variable Coefficient Standard Error Value Constant 345.24 589.07 0.59 Independent variable: Output units 0.71 0.93 0.76 ? = 0.054; Durbin-Watson statistic = 0 50
Hankuk Electronics started production on a sophisticated new smartphone running the Android operating system in January 2017. Given the razor-thin margins in the consumer electronics indus- try, Hankuk's success depends heavily on being able to produce the phone as economically as possible. At the end of the first year of production, Hankuk's controller, Inbee Kim, gathered data on its monthly levels of output, as well as monthly consumption of direct labor-hours (DLH). Inbee views labor-hours as the key driver of Hankuk's direct and overhead costs. The information collected by Inbee is provided below: Home Insert Page Layout Formulas Month Output (Units) Direct Labor-Hours 2 January 3 February 4 March 684 1,400 492 820 660 875 5 April 6 May 7 June 8 July 9 August 10 September 11 October 12 November 13 December 504 670 612 760 636 765 648 735 600 660 648 695 696 710 672 690 675 700 1. Inbee is keen to examine the relationship between direct labor consumption and output levels. She decides to estimate this relationship using a simple linear regression based on the monthly data. Verify that the following is the result obtained by Inbee: Regression 1: Direct labor-hours = a + (b x Output units) Variable Coefficient Standard Error Value Constant 345.24 589.07 0.59 Independent variable: Output units 0.71 0.93 0.76 ? = 0.054; Durbin-Watson statistic = 0 50
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:Hankuk Electronics started production on a sophisticated new smartphone running
the Android operating system in January 2017. Given the razor-thin margins in the consumer electronics indus-
try, Hankuk's success depends heavily on being able to produce the phone as economically as possible.
At the end of the first year of production, Hankuk's controller, Inbee Kim, gathered data on its monthly
levels of output, as well as monthly consumption of direct labor-hours (DLH). Inbee views labor-hours as
the key driver of Hankuk's direct and overhead costs. The information collected by Inbee is provided below:
Home
Insert
Page Layout
Formulas
Month Output (Units) Direct Labor-Hours
2 January
3 February
4 March
684
1,400
492
820
660
875
5 April
6 May
7 June
8 July
9 August
10 September
11 October
12 November
13 December
504
670
612
760
636
765
648
735
600
660
648
695
696
710
672
690
675
700
1. Inbee is keen to examine the relationship between direct labor consumption and output levels. She
decides to estimate this relationship using a simple linear regression based on the monthly data. Verify
that the following is the result obtained by Inbee:
Regression 1: Direct labor-hours = a + (b x Output units)
Variable
Coefficient
Standard Error
Value
Constant
345.24
589.07
0.59
Independent variable: Output units
0.71
0.93
0.76
? = 0.054; Durbin-Watson statistic
= 0 50
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