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 y = 1,217.33 + 7.68x. Production Volume Total Cost ($) $ (units) 400 Submit Answer 450 550 600 700 750 4,100 4,900 5,400 5,900 6,500 (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.) $6209.33 7,000 (b) Develop a 99% prediction interval for the total cost (in dollars) for next month. (Round your answers to the nearest cent.) X to $ X (c) If an accounting cost report at the end of next month shows that the actual production cost during the month was $6,700, should managers be concerned about incurring such a high total cost for the month? Discuss. Since $6,700 is within the prediction interval, managers should not be concerned about Incurring such a high total cost for one month. The below data on the production volume x and total costy (in dollars) for a particular manufacturing operation were used to develop the estimated regression equation9-1,217.33 +7.68x.Production Volume Total Cost(units)400450550Submit Answer6007007504,1004,9005,4005,9006,5007,000(a) The company's production schedule shows that 650 units must be produced next month. What is the point estimate of the total cost (in dollars) for next month? (Round youranswer to the nearest cent.)$ 6209 33(b) Develop a 99% prediction interval for the total cost (in dollars) for next month. (Round your answers to the nearest cent.)$x to s(c) If an accounting cost report at the end of next month shows that the actual production cost during the month was $6,700, should managers be concerned about incurringsuch a high total cost for the month? Discuss.Since $6,700 is within✔✔the prediction interval, managers should not be✔ concerned about incurring such a high total cost for one month.

here X denotes production volume and Y denotes total cost.We also have given a regression equation…

Answered: The below data on the production volume…

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 y = 1,217.33 + 7.68x. Production Volume Total Cost ($) $ (units) 400 Submit Answer 450 550 600 700 750 4,100 4,900 5,400 5,900 6,500 (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.) $6209.33 7,000 (b) Develop a 99% prediction interval for the total cost (in dollars) for next month. (Round your answers to the nearest cent.) X to $ X (c) If an accounting cost report at the end of next month shows that the actual production cost during the month was $6,700, should managers be concerned about incurring such a high total cost for the month? Discuss. Since $6,700 is within the prediction interval, managers should not be concerned about Incurring such a high total cost for one month.