Question

Cost Control 2: The Apex Corporation wants to improve its cost control program. Build a regression model to predict the total manufacturing cost per month (COST, measured in thousands of dollars) from the total production of paper per month in tons (PAPER), total machine hours used per month (MACHINE), total variable overhead costs per month in thousands of dollars (OVERHEAD), and the total direct labor hours used each month (LABOR). The data are contained in the worksheet named COST,HW8.  

COST	PAPER	MACHINE	OVERHEAD	LABOR
1102	550	218	112	325
1008	502	199	99	301
1227	616	249	126	376
1395	701	277	143	419
1710	838	363	191	682
1881	919	399	210	751
1924	939	411	216	813
1246	622	248	124	371
1255	626	259	127	383
1314	659	266	135	402
1557	740	334	181	546
1887	901	401	216	655
1204	610	238	117	351
1211	598	246	124	370
1287	646	259	127	387
1451	732	286	155	433
1828	891	389	208	878
1903	932	404	216	660
1997	964	430	233	694
1363	680	271	129	405

(a) What is the sample-based model coefficient for machine hours? Hint: Be mindful of the measurement units. (Enter your answers to two decimal places.)

$ ___

(b) State the appropriate test statistic name, degrees of freedom, test statistic value, and the associated p-value (Enter your degrees of freedom as a whole number, the test statistic value to three decimal places, and the p-value to four decimal places).

t (15) = ___ , p = ___

(c) Construct a 95% confidence interval estimate of the true marginal cost associated with total machine hours. (Round your answers to three decimal places.)

( $ ___ , $ ___ )

Answer 1