Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Consider the following data on production volume \( (x) \) and total cost \( (y) \) for a particular manufacturing operation.
**Excel File:** data14-29.xlsx
| Production Volume (units) | Total Cost ($) |
|---------------------------|----------------|
| 400 | 4,000 |
| 450 | 5,000 |
| 550 | 5,400 |
| 600 | 5,900 |
| 700 | 6,400 |
| 750 | 7,000 |
The estimated regression equation is \(\hat{y} = 1246.67 + 7.6x\).
Use \(\alpha = 0.05\) to test whether the production volume is significantly related to the total cost.
Complete the ANOVA table. Enter all values with nearest whole number, except the \( F \) test statistic (to 2 decimals) and the \( p \)-value (to 4 decimals).
| Source of Variation | Degrees of Freedom | Sum of Squares | Mean Square | \( F \) | \( p \)-value |
|---------------------|--------------------|----------------|-------------|-------|-------------|
| Regression | | | | | |
| Error | | | | | |
| Total | | | | | |
What is your conclusion?
- Select your answer -](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6387f1fe-f7de-460c-a439-51c8967659dd%2F39eba1eb-fb1b-4fba-b0c4-b8688cc5150d%2Fcs8q3lb_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Consider the following data on production volume \( (x) \) and total cost \( (y) \) for a particular manufacturing operation.
**Excel File:** data14-29.xlsx
| Production Volume (units) | Total Cost ($) |
|---------------------------|----------------|
| 400 | 4,000 |
| 450 | 5,000 |
| 550 | 5,400 |
| 600 | 5,900 |
| 700 | 6,400 |
| 750 | 7,000 |
The estimated regression equation is \(\hat{y} = 1246.67 + 7.6x\).
Use \(\alpha = 0.05\) to test whether the production volume is significantly related to the total cost.
Complete the ANOVA table. Enter all values with nearest whole number, except the \( F \) test statistic (to 2 decimals) and the \( p \)-value (to 4 decimals).
| Source of Variation | Degrees of Freedom | Sum of Squares | Mean Square | \( F \) | \( p \)-value |
|---------------------|--------------------|----------------|-------------|-------|-------------|
| Regression | | | | | |
| Error | | | | | |
| Total | | | | | |
What is your conclusion?
- Select your answer -
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