Question
In: Statistics and Probability
Consider the following sample of production volumes and total cost data for a manufacturing operation. Production...
Consider the following sample of production volumes and total cost data for a manufacturing operation.
| Production
Volume (units) |
Total Cost ($) |
|---|---|
| 400 | 4,000 |
| 450 | 5,000 |
| 550 | 5,300 |
| 600 | 5,900 |
| 700 | 6,400 |
| 750 | 6,900 |
This data was used to develop an estimated regression equation, ŷ = 1,305.33 + 7.44x, relating production volume and cost for a particular manufacturing operation. Use α = 0.05 to test whether the production volume is significantly related to the total cost. (Use the F test.)
(a) State the null and alternative hypotheses.
(b)Set up the ANOVA table. (Round your p-value to three decimal places and all other values to two decimal places.)
| Source of Variation |
Sum of Squares |
Degrees of Freedom |
Mean Square |
F | p-value |
|---|---|---|---|---|---|
| Regression | |||||
| Error | |||||
| Total |
(c)Find the value of the test statistic. (Round your answer to two decimal places.)
(d)Find the p-value. (Round your answer to three decimal places.)
(e)What is your conclusion?
Do not reject H0. We cannot conclude that the relationship between production volume and total cost is significant.
Reject H0. We conclude that the relationship between production volume and total cost is significant.
Do not reject H0. We conclude that the relationship between production volume and total cost is significant.
Reject H0. We cannot conclude that the relationship between production volume and total cost is significant.
Solutions
orchestra answered 1 year agoRelated Solutions
Consider the following sample of production volumes and total cost data for a manufacturing operation.
You may need to use the appropriate technology to answer this
question.
Consider the following sample of production volumes and total
cost data for a manufacturing operation.
Production
Volume
(units)
Total Cost
($)
400
4,100
450
5,000
550
5,500
600
5,900
700
6,500
750
7,000
This data was used to develop an estimated regression
equation,
ŷ = 1,342.67 + 7.52x,
relating production volume and cost for a particular
manufacturing operation. Use
α = 0.05
to test whether the production volume...
Consider the following sample of production volumes and total cost data for a manufacturing operation. Production...
Consider the following sample of production volumes and total
cost data for a manufacturing operation.
Production
Volume
(units)
Total Cost
($)
400
4,000
450
4,900
550
5,400
600
6,000
700
6,300
750
6,900
This data was used to develop an estimated regression equation,
ŷ = 1,305.33 + 7.44x, relating
production volume and cost for a particular manufacturing
operation. Use α = 0.05 to test whether the production
volume is significantly related to the total cost. (Use the
F test.)
State...
Frazier Manufacturing Company collected the following production data for the past month: Units Produced Total Cost...
Frazier Manufacturing Company collected the following production
data for the past month: Units Produced Total Cost 1,600 $66,000
1,300 57,000 1,500 67,500 1,100 49,500 If the high-low method is
used, what is the monthly total cost equation? A. Total cost = $0 +
$45/unit B. Total cost = $13,200 + $33/unit C. Total cost = $16,500
+ $30/unit D. Total cost = $9,900 + $36/unit
I know the answer is $13,200+33/unit. But I do not see how the
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Cost
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CORONADO FURNITURE...
The Polishing Department of Coronado Company has the following production and manufacturing cost data for September....
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production and manufacturing cost data for September. Materials are
entered at the beginning of the process.
Production: Beginning inventory 1,520 units that are 100%
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