Ohio Swiss Milk Products manufactures and distributes ice cream in Ohio, Kentucky, and West Virginia. The company wants to expand operations by locating another plant in northern Ohio. The size of the new plant will be a function of the expected demand for ice cream within the area served by the plant. A market survey is currently under way to determine that demand. Ohio Swiss wants to estimate the relationship between the manufacturing cost per gallon and the number of gallons sold in a year to determine the demand for ice cream and, thus, the size of the new plant. The following data have been collected: ITT Plant Cost per Thousand Gallons (Y) $1,024 962 Thousands of Gallons Sold (X) 434.7 1 2 466.4 1,065 1,006 1,045 1,068 988 251.3 372.1 4 245.0 258.6 6 614.9 414.0 267.5 380.4 3,704.9 8 997 1,063 1,000 $10,218 10 Total a. Develop a regression equation to forecast the cost per thousand gallons as a function of the number of thousands of gallons produced. The forecasting model is given by the equation Y =- X. (Enter your responses rounded to two decimal places.)
Ohio Swiss Milk Products manufactures and distributes ice cream in Ohio, Kentucky, and West Virginia. The company wants to expand operations by locating another plant in northern Ohio. The size of the new plant will be a function of the expected demand for ice cream within the area served by the plant. A market survey is currently under way to determine that demand. Ohio Swiss wants to estimate the relationship between the manufacturing cost per gallon and the number of gallons sold in a year to determine the demand for ice cream and, thus, the size of the new plant. The following data have been collected: ITT Plant Cost per Thousand Gallons (Y) $1,024 962 Thousands of Gallons Sold (X) 434.7 1 2 466.4 1,065 1,006 1,045 1,068 988 251.3 372.1 4 245.0 258.6 6 614.9 414.0 267.5 380.4 3,704.9 8 997 1,063 1,000 $10,218 10 Total a. Develop a regression equation to forecast the cost per thousand gallons as a function of the number of thousands of gallons produced. The forecasting model is given by the equation Y =- X. (Enter your responses rounded to two decimal places.)
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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