! Required information Exercise 2A-5 (Algo) Least-Squares Regression [LO2-11] George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the company's products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks: Week 123456 Units 10 7 12 6 8 11 54 Total Etching Cost $27 20 31 20 24 30 $152 For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week. Exercise 2A-5 Part 2 (Algo) Required: 2-a. Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per week. 2-b. Express these estimates in the form Y = a +bX.
! Required information Exercise 2A-5 (Algo) Least-Squares Regression [LO2-11] George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the company's products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks: Week 123456 Units 10 7 12 6 8 11 54 Total Etching Cost $27 20 31 20 24 30 $152 For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week. Exercise 2A-5 Part 2 (Algo) Required: 2-a. Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per week. 2-b. Express these estimates in the form Y = a +bX.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Required information
Exercise 2A-5 (Algo) Least-Squares Regression [LO2-11]
George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the
company's products, a platinum diving watch, goes through an etching process. The company has recorded etching costs
as follows over the last six weeks:
Week
123456
Units
10
7
12
6
8
11
54
Total Etching
Cost
$ 27
20
31
20
24
30
$152
For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost
per week.
Exercise 2A-5 Part 2 (Algo)
Required:
2-a. Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per week.
2-b. Express these estimates in the form Y = a +bX.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F87c896c5-a2bd-45d5-a2d4-a5c074e3a351%2F3495248e-53af-41fc-8023-4de3f741641a%2Fjteswfl_processed.jpeg&w=3840&q=75)
Transcribed Image Text:!
Required information
Exercise 2A-5 (Algo) Least-Squares Regression [LO2-11]
George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the
company's products, a platinum diving watch, goes through an etching process. The company has recorded etching costs
as follows over the last six weeks:
Week
123456
Units
10
7
12
6
8
11
54
Total Etching
Cost
$ 27
20
31
20
24
30
$152
For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost
per week.
Exercise 2A-5 Part 2 (Algo)
Required:
2-a. Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per week.
2-b. Express these estimates in the form Y = a +bX.
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