Question

In: Statistics and Probability

The president of a company that manufactures car seats has been concerned about the number and...

The president of a company that manufactures car seats has been concerned about the number and cost of machine breakdowns. The problem is that the machines are old and becoming quite unreliable. However, the cost of replacing them is quite high, and the president is not certain that the cost can be made up in today’s slow economy. To help make a decision about replacement, he gathered data about last month’s costs for repairs in dollars (y) and the ages in months (x) of the plant’s 20 welding machines as recorded :

Ages X Cost Y
110 655.34
113 753.36
114 785.04
134 886.28
93 685.24
141 952.32
115 649.48
115 677.96
115 866.9
142 1052.74
96 724.84
139 897.52
89 670.54
93 701.88
91 583.62
109 935.6
138 948.96
83 708.3
100 840.22
137 832.08

a) Find the coefficient of determination and discuss what this statistic tells you.

b) At 5% significance level, test to determine whether the age of a machine and its monthly cost of repair are linearly related.

c) Predict the average monthly repair cost of welding machines that are 120 months old.

d) Predict with 95% confidence the monthly repair cost of a welding machine that is 120 months old.

Solutions

Expert Solution

orchestra answered 2 years ago
Next > < Previous

Related Solutions

The president of a company that manufactures car seats has been concerned about the number and...
The president of a company that manufactures car seats has been concerned about the number and cost of machine breakdowns. The problem is that the machines are old and becoming quite unreliable. However, the cost of replacing them is quite high, and the president is not certain that the cost can be made up in today’s slow economy. To help make a decision about replacement, he gathered data about last month’s costs for repairs in dollars (y) and the ages...
The president of a company that manufactures car seats has been concerned about the number and...
The president of a company that manufactures car seats has been concerned about the number and cost of machine breakdowns. The problem is that the machines are old and becoming quite unreliable. However, the cost of replacing them is quite high, and the president is not certain that the cost can be made up in today’s slow economy. To help make a decision about replacement, he gathered data about last month’s costs for repairs in dollars (y) and the ages...
: The president of a company that manufactures car seats has been concerned about the number...
: The president of a company that manufactures car seats has been concerned about the number and cost of machine breakdowns. The problem is that the machines are old and becoming quite unreliable. However, the cost of replacing them is quite high, and the president is not certain that the cost can be made up in today’s slow economy. To help make a decision about replacement, he gathered data about last month’s costs for repairs in dollars (y) and the...
A number of people (including the President) have been concerned about the value of the dollar...
A number of people (including the President) have been concerned about the value of the dollar as it affects our international competitiveness. On the other hand the value of the dollar obviously also affects the purchasing power of American consumers. In what sense are these interests in conflict? Which is more important?
The president of Mission Inc. has been concerned about the growth in costs over the last...
The president of Mission Inc. has been concerned about the growth in costs over the last several years. The president asked the controller to perform an activity analysis to gain a better insight into these costs. The result of the activity analysis is summarized as follows: Required: 1. Classify the activities into prevention, appraisal, internal failure, external failure, and not costs of quality (producing product). Classify the activities into value-added and non-value added activities. Activity Activity Cost Cost of Quality...
Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats...
Sky High Seats manufactures seats for airplanes. The company has the capacity to produce 100,000 seats per year, but currently produces and sells 75,000 seats per year. The following information relates to the current production of the product: Regular selling price per unit $400 Variable costs per unit: Manufacturing $220 Marketing and administrative $50 Total fixed costs: Manufacturing $1,500,000 Marketing and administrative $1,000,000 If a special sales order is accepted for 7,000 seats at a price of $350 per unit,...
The president of Mission Inc. has been concerned about the growth in costs over the last several years.
Pareto Chart and Cost of Quality Report for a Manufacturing CompanyThe president of Mission Inc. has been concerned about the growth in costs over the last several years. The president asked the controller to perform an activity analysis to gain a better insight into these costs. The result of the activity analysis is summarized as follows:Required:1. Classify the activities into prevention, appraisal, internal failure, external failure, and not costs of quality (producing product). Classify the activities into value-added and non-value...
Company manufactures car seats in its plant. Each car seat passes through the assembly department and...
Company manufactures car seats in its plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. The​ process-costing system at Hoffman Company has a single​ direct-cost category​ (direct materials) and a single​ indirect-cost category​ (conversion costs). Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the assembly department finishes work on each car​ seat, it is immediately transferred to testing....
Hoffman Company manufactures car seats in its Boise plant. Each car seat passes through the assembly...
Hoffman Company manufactures car seats in its Boise plant. Each car seat passes through the assembly department and the testing department. This problem focuses on the assembly department. The​ process-costing system at Hoffman Company has a single​ direct-cost category​ (direct materials) and a single​ indirect-cost category​ (conversion costs). Direct materials are added at the beginning of the process. Conversion costs are added evenly during the process. When the assembly department finishes work on each car​ seat, it is immediately transferred...
Company manufactures car seats in its Hartford plant. Each car seat passes through the assembly department...
Company manufactures car seats in its Hartford plant. Each car seat passes through the assembly department and testing department. This problem focuses on the testing department. Direct materials are added when the testing department process is 95​% complete. Conversion costs are added evenly during the testing​ department's process. As work in assembly is​ completed, each unit is immediately transferred to testing. As each unit is completed in​ testing, it is immediately transferred to Finished Goods. St. Germaine Company uses the​...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT