The cost of making a batch of a certain product depends on the size of the batch, as shown by the following sample data: Cost $ 30 70 140 270 530 1010 2000 5100 size of the batch 1 5 10 25 50 100 250 500 a) Fit a straight line to said data, with the least squares method, use the lot size as the independent variable. b) Find a 95% confidence interval for alfa that can be interpreted as the fixed overhead cost of manufacture.
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.
The cost of making a batch of a certain product depends on the size of the batch, as shown by the following sample data:
| Cost $ | 30 | 70 | 140 | 270 | 530 | 1010 | 2000 | 5100 |
| size of the batch | 1 | 5 | 10 | 25 | 50 | 100 | 250 | 500 |
a) Fit a straight line to said data, with the least squares method, use the lot size as the independent variable.
b) Find a 95% confidence interval for alfa that can be interpreted as the fixed overhead cost of manufacture.
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