an important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares nethod to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing olume. Consider the following sample of production volumes and total cost data for a manufacturing operation. TI Production Volume (units) Total Cost ($) 400 3,600 450 4,600 550 5,000 600 5,500 700 6,000 750 6,600 . Use these data to develop an estimated regression equation that could be used to predict the total cost for a given production volume. Do not round ntermediate calculations. Compute b1 and bo (to 1 decimal). Do not round intermediate calculations. "1 Complete the estimated regression equation (to 1 decimal). Do not round intermediate calculations. . What is the variable cost per unit produced (to 2 decimal)? Do not round intermediate calculations. . Compute the coefficient of determination (to 3 decimals). Do not round intermediate calculations. Note: report r between 0 and 1. Vhat percentage of the variation in total cost can be explained by the production volume (to 1 decimal)? Do not round intermediate calculations. % 1. The company's production schedule shows 500 units must be produced next month. What is the estimated total cost for this operation (to the nearest whole
an important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares nethod to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing olume. Consider the following sample of production volumes and total cost data for a manufacturing operation. TI Production Volume (units) Total Cost ($) 400 3,600 450 4,600 550 5,000 600 5,500 700 6,000 750 6,600 . Use these data to develop an estimated regression equation that could be used to predict the total cost for a given production volume. Do not round ntermediate calculations. Compute b1 and bo (to 1 decimal). Do not round intermediate calculations. "1 Complete the estimated regression equation (to 1 decimal). Do not round intermediate calculations. . What is the variable cost per unit produced (to 2 decimal)? Do not round intermediate calculations. . Compute the coefficient of determination (to 3 decimals). Do not round intermediate calculations. Note: report r between 0 and 1. Vhat percentage of the variation in total cost can be explained by the production volume (to 1 decimal)? Do not round intermediate calculations. % 1. The company's production schedule shows 500 units must be produced next month. What is the estimated total cost for this operation (to the nearest whole
Elementary Linear Algebra (MindTap Course List)
8th Edition
ISBN:9781305658004
Author:Ron Larson
Publisher:Ron Larson
Chapter2: Matrices
Section2.CR: Review Exercises
Problem 89CR: Cellular Phone Subscribers The table shows the numbers of cellular phone subscribers y in millions...
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