Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN: 9781305627734
Author: Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher: Cengage Learning
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Chapter 8, Problem 21P
The president of a small manufacturing firm is concerned about the continual increase in manufacturing costs over the past several years. The following figures provide a time series of the cost per unit for the firm’s leading product over the past eight years:
- a. Construct a time series plot. What type of pattern exists in the data?
- b. Use simple linear
regression analysis to find the parameters for the line that minimizes MSE for this time series. - c. What is the average cost increase that the firm has been realizing per year?
- d. Compute an estimate of the cost/unit for next year.
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The president of small manufacturing firm is concerned about the continual increase in manufacturing costs over the past several years. The following figures provide a time series of the cost per unit for the firm’s leading product over the past eight years.
Year
Cost/Unit ($)
Year
Cost/Unit ($)
1
20.00
5
26.60
2
24.50
6
30.00
3
28.20
7
31.00
4
27.50
8
36.00
Construct a time series plot. What type of pattern exists in the data?
Use simple linear regression analysis to find the parameters for the line that minimizes MSE for this time series.
What is the average cost increase that the firm has been realizing per year?
Compute an estimate of the cost/unit for next year.
A researcher notes that, in a certain region, a disproportionate number of software millionaires were born around the year 1955. Is this a coincidence, or does birth year matter when gauging whether a software founder will besuccessful? The researcher investigated this question by analyzing the data shown in the accompanying table. Complete parts a through c below.
a. Find the coefficient of determination for the simple linear regression model relating number (y) of software millionaire birthdays in a decade to total number (x) of births in the region. Interpret the result.
The coefficient of determination is 1.___?
(Round to three decimal places as needed.)
This value indicates that 2.____ of the sample variation in the number of software millionaire birthdays is explained by the
linear relationship with the total number of births in the region.
(Round to one decimal place as needed.)
b. Find the coefficient of determination for the simple linear regression model…
Consider the following estimated regression model relating annual salary to years of education and work experience.
Estimated Salary=10,737.30+2872.43(Education)+1129.1(Experience)Estimated Salary=10,737.30+2872.43(Education)+1129.1(Experience)
Suppose an employee with 44 years of education has been with the company for 1111 years (note that education years are the number of years after 8th8th grade). According to this model, what is his estimated annual salary?
Chapter 8 Solutions
Essentials of Business Analytics (MindTap Course List)
Ch. 8 - Consider the following time series data:
Using...Ch. 8 - Refer to the time series data in Problem 1. Using...Ch. 8 - Problems 1 and 2 used different forecasting...Ch. 8 - Consider the following time series data:
Compute...Ch. 8 - Consider the following time series...Ch. 8 - Consider the following time series...Ch. 8 - Refer to the gasoline sales time series data in...Ch. 8 - Prob. 8PCh. 8 - Prob. 9PCh. 8 - Prob. 10P
Ch. 8 - For the Hawkins Company, the monthly percentages...Ch. 8 - Corporate triple A bond interest rates for 12...Ch. 8 - The values of Alabama building contracts (in...Ch. 8 - The following time series shows the sales of a...Ch. 8 - Prob. 15PCh. 8 - The following table reports the percentage of...Ch. 8 - Consider the following time series: a. Construct a...Ch. 8 - Consider the following time series:
Construct a...Ch. 8 - Because of high tuition costs at state and private...Ch. 8 - The Seneca Children’s Fund (SCF) is a local...Ch. 8 - The president of a small manufacturing firm is...Ch. 8 - Consider the following time series: a. Construct a...Ch. 8 - Consider the following time series...Ch. 8 - The quarterly sales data (number of copies sold)...Ch. 8 - Prob. 25PCh. 8 - South Shore Construction builds permanent docks...Ch. 8 - Hogs & Dawgs is an ice cream parlor on the border...Ch. 8 - Donna Nickles manages a gasoline station on the...Ch. 8 - The Vintage Restaurant, on Captiva Island near...
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