Production Volume (units) Total Cost ($) 100 1730 200 2792 300 4129 400 5385 500 6497 600 7764 700 8835 800 10180 900 11412 What is the estimated error term ("the residual") associated with production of 500 radio units? (Round to the nearest whole number.) 2. What is the margin of error for a 95% confidence interval for the estimated total cost when production is 1000 radio units? (Round to one decimal place.) 3. What is the margin of error for a 95% prediction interval for the estimated total cost when production is 1000 radio units? (Round to one decimal place.) 4. Which of the following is a proper interpretation of your estimated slope? a. When production volume increases by one unit, total cost increases by $12.10 on average. b. When total costs increases by one dollar, production volume increases by $12.10 units on average. c. When production volume increases by one unit, total cost increases by $468 on average. d. When total costs increases by one dollar, production volume increases by 468 units on average. About how much of the variation in total costs cannot be explained by production volume? a. Less than 1% b. 1% c. 2% d. 3%
Inverse Normal Distribution
The method used for finding the corresponding z-critical value in a normal distribution using the known probability is said to be an inverse normal distribution. The inverse normal distribution is a continuous probability distribution with a family of two parameters.
Mean, Median, Mode
It is a descriptive summary of a data set. It can be defined by using some of the measures. The central tendencies do not provide information regarding individual data from the dataset. However, they give a summary of the data set. The central tendency or measure of central tendency is a central or typical value for a probability distribution.
Z-Scores
A z-score is a unit of measurement used in statistics to describe the position of a raw score in terms of its distance from the mean, measured with reference to standard deviation from the mean. Z-scores are useful in statistics because they allow comparison between two scores that belong to different normal distributions.
|
Production Volume (units) |
Total Cost ($) |
|
100 |
1730 |
|
200 |
2792 |
|
300 |
4129 |
|
400 |
5385 |
|
500 |
6497 |
|
600 |
7764 |
|
700 |
8835 |
|
800 |
10180 |
|
900 |
11412 |
- What is the estimated error term ("the residual") associated with production of 500 radio units? (Round to the nearest whole number.)
2. What is the margin of error for a 95% confidence interval for the estimated total cost when production is 1000 radio units? (Round to one decimal place.)
3. What is the margin of error for a 95% prediction interval for the estimated total cost when production is 1000 radio units? (Round to one decimal place.)
4. Which of the following is a proper interpretation of your estimated slope?
a. When production volume increases by one unit, total cost increases by $12.10 on average.
b. When total costs increases by one dollar, production volume increases by $12.10 units on average.
c. When production volume increases by one unit, total cost increases by $468 on average.
d. When total costs increases by one dollar, production volume increases by 468 units on average.
- About how much of the variation in total costs cannot be explained by production volume?
a. Less than 1%
b. 1%
c. 2%
d. 3%
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