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MindTap Business Statistics for Ragsdale's Spreadsheet Modeling & Decision Analysis, 8th Edition, [Instant Access], 2 terms (12 months)
8th Edition
ISBN: 9781337274876
Author: Cliff Ragsdale
Publisher: Cengage Learning US
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Ohio Swiss Milk Products manufactures and distributes ice cream in Ohio, Kentucky, and West Virginia. The company wants to expand operations by locating another plant in northern
Ohio. The size of the new plant will be a function of the expected demand for ice cream within the area served by the plant. A market survey is currently under way to determine that
demand.
Ohio Swiss wants to estimate the relationship between the manufacturing cost per gallon and the number of gallons sold in a year to determine the demand for ice cream and, thus, the
size of the new plant. The following data have been collected:
Plant
ITT
Thousands of Gallons Sold (X)
434.7
Cost per Thousand Gallons (Y)
1
$1,024
2
962
466.4
3
1,065
1,006
1,045
1,068
251.3
372.1
5
245.0
6.
258.6
7
988
614.9
414.0
8
997
9
1,063
1,000
$10,218
267.5
380,4
3,704.9
10
Total
a. Develop a regression equation to forecast the cost per thousand gallons as a function of the number of thousands of gallons produced.
The forecasting model…
Ohio Swiss Milk Products manufactures and distributes ice cream in Ohio, Kentucky, and West Virginia. The company wants to expand operations by locating another plant in northern
Ohio. The size of the new plant will be a function of the expected demand for ice cream within the area served by the plant. A market survey is currently under way to determine that
demand.
Ohio Swiss wants to estimate the relationship between the manufacturing cost per gallon and the number of gallons sold in a year to determine the demand for ice cream and, thus, the
size of the new plant. The following data have been collected:
ITT
Cost per Thousand Gallons (Y)
$1,024
Thousands of Gallons Sold (X)
434.7
Plant
962
466.4
251.3
372.
1,065
1,006
1.045
245.0
258.6
1,068
988
997
1,063
1,000
$10.218
614.9
414.0
267.5
380,4
3 704 9
9
10
Total
a. Develop a regression equation to forecast the cost per thousand gallons as a function of the number of thousands of gallons produced.
The forecasting model is given by the…
Ohio Swiss Milk Products manufactures and distributes ice cream in Ohio, Kentucky, and West Virginia. The company wants to expand operations by locating another plant in northern
Ohio. The size of the new plant will be a function of the expected demand for ice cream within the area served by the plant. A market survey is currently under way to determine that
demand.
Ohio Swiss wants to estimate the relationship between the manufacturing cost per gallon and the number of gallons sold in a year to determine the demand for ice cream and, thus, the
size of the new plant. The following data have been collected:
ITT
Plant
1
Cost per Thousand Gallons (Y)
$1,024
Thousands of Gallons Sold (X)
434.7
2
962
466.4
3
1,065
1,006
1,045
1,068
251.3
372.1
5
245.0
258.6
614.9
7
988
8.
997
414.0
267.5
380.4
3,704.9
9
1,063
1,000
$10,218
10
Total
a. Develop a regression equation to forecast the cost per thousand gallons as a function of the number of thousands of gallons produced.
The forecasting model is…
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