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 -

Answer: Given that; The estimated regression equation is y^= 1246.67 + 7.6x Sample size =6…

Answered: The estimated regression equation is ŷ…

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The estimated regression equation is ŷ = 1246.67 +7.6.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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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 -

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