A simple curve that often makes a good model for the variable costs of a company, as a function of the sales level x, has the form: y = B\x + Bx² + B3x² (no constant term because we are not looking at fixed costs) Find the best Least-Squares curve of the form above that fits to the data: (4, 1.58), (6,2.08), (8,2.5), (10, 2.8), (12, 3.1), (14, 3.4) , (16, 3.8) and (18, 4.32). Hint: construct your matrix as y= b1x+b2x2+b3x3.... bnxn

A simple curve that often makes a good model for the variable costs of a company, as a function of the sales level x, has the form: y = B\x + Bx² + B3x² (no constant term because we are not looking at fixed costs) Find the best Least-Squares curve of the form above that fits to the data: (4, 1.58), (6,2.08), (8,2.5), (10, 2.8), (12, 3.1), (14, 3.4) , (16, 3.8) and (18, 4.32). Hint: construct your matrix as y= b1x+b2x2+b3x3.... bnxn

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 8MC

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