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The below data on the production volume x and total cost y (in dollars) for a particular manufacturing operation were used to develop the estimated regression equation ý = 1,062.67 + 7.92x. Production Volume Total Cost (units) ($) 400 3,900 450 5,000 550 5,500 600 5,800 700 6,400 750 7,100 (a) The company's production schedule shows that 650 units must be produced next month. What is the point estimate of the total cost (in dollars) for next month? (Round your answer to the nearest cent.) (b) Develop a 99% prediction interval for the total cost (in dollars) for next month. (Round your answers to the nearest cent.) to $ (c) If an accounting cost report at the end of next month shows that the actual production cost during the month was $7,400, should managers be concerned about incurring such a high total cost for the month? Discuss. Since $7,400 is ---Select--- v the prediction interval, managers should ---Select--- v concerned about incurring such a high total cost for one month.

The below data on the production volume x and total cost y (in dollars) for a particular manufacturing operation were used to develop the estimated regression equation ý = 1,062.67 + 7.92x. Production Volume Total Cost (units) ($) 400 3,900 450 5,000 550 5,500 600 5,800 700 6,400 750 7,100 (a) The company's production schedule shows that 650 units must be produced next month. What is the point estimate of the total cost (in dollars) for next month? (Round your answer to the nearest cent.) (b) Develop a 99% prediction interval for the total cost (in dollars) for next month. (Round your answers to the nearest cent.) to $ (c) If an accounting cost report at the end of next month shows that the actual production cost during the month was $7,400, should managers be concerned about incurring such a high total cost for the month? Discuss. Since $7,400 is ---Select--- v the prediction interval, managers should ---Select--- v concerned about incurring such a high total cost for one month.

MATLAB: An Introduction with Applications
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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The below data on the production volume x and total cost y (in dollars) for a particular manufacturing operation were used to develop the estimated regression equation ý = 1,062.67 + 7.92x. Production Volume Total Cost (units) ($) 400 3,900 450 5,000 550 5,500 600 5,800 700 6,400 750 7,100 (a) The company's production schedule shows that 650 units must be produced next month. What is the point estimate of the total cost (in dollars) for next month? (Round your answer to the nearest cent.) $ (b) Develop a 99% prediction interval for the total cost (in dollars) for next month. (Round your answers to the nearest cent.) to $ (c) If an accounting cost report at the end of next month shows that the actual production cost during the month was $7,400, should managers be concerned about incurring such a high total cost for the month? Discuss. Since $7,400 is --Select--- v the prediction interval, managers should ---Select--- v concerned about incurring such a high total cost for one month.
Transcribed Image Text:The below data on the production volume x and total cost y (in dollars) for a particular manufacturing operation were used to develop the estimated regression equation ý = 1,062.67 + 7.92x. Production Volume Total Cost (units) ($) 400 3,900 450 5,000 550 5,500 600 5,800 700 6,400 750 7,100 (a) The company's production schedule shows that 650 units must be produced next month. What is the point estimate of the total cost (in dollars) for next month? (Round your answer to the nearest cent.) $ (b) Develop a 99% prediction interval for the total cost (in dollars) for next month. (Round your answers to the nearest cent.) to $ (c) If an accounting cost report at the end of next month shows that the actual production cost during the month was $7,400, should managers be concerned about incurring such a high total cost for the month? Discuss. Since $7,400 is --Select--- v the prediction interval, managers should ---Select--- v concerned about incurring such a high total cost for one month.
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