he president of a small manufacturing firm is concerned about the continual growth in manufacturing costs in the ast several years. The data series of the cost per unit for the firm's leading product over the past eight years is as pllows: Year Cost/Unit ($) Year Cost/Unit ($) 24.00 29.10 2 28.50 32.00 32.80 7 33.40 4 30.40 8. 39.40

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The president of a small manufacturing firm is concerned about the continual growth in manufacturing costs in the
past several years. The data series of the cost per unit for the firm's leading product over the past eight years is as
follows:
Year
Cost/Unit ($)
Year
Cost/Unit ($)
24.00
29.10
28.50
6.
32.00
3
32.80
7
33.40
4
30.40
8
39.40
Transcribed Image Text:The president of a small manufacturing firm is concerned about the continual growth in manufacturing costs in the past several years. The data series of the cost per unit for the firm's leading product over the past eight years is as follows: Year Cost/Unit ($) Year Cost/Unit ($) 24.00 29.10 28.50 6. 32.00 3 32.80 7 33.40 4 30.40 8 39.40
b. Use Excel to develop a simple linear regression model for these data. What average cost increase has the firm
been realizing per year? Do not round intermediate calculations. Round your answers to four decimal places.
The regression equation is Unit Cost =
194.49
+
1.53
Year.
The average cost increase per year is $
2.2
Transcribed Image Text:b. Use Excel to develop a simple linear regression model for these data. What average cost increase has the firm been realizing per year? Do not round intermediate calculations. Round your answers to four decimal places. The regression equation is Unit Cost = 194.49 + 1.53 Year. The average cost increase per year is $ 2.2
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