Question
In: Statistics and Probability
25. An important application of regression in manufacturing is the estimation of cost of production. Based...
25. An important application of regression in manufacturing is the estimation of cost of production. Based on DATA from Ajax Widgets relating cost (Y) to volume (X), what is the cost of producing 600 widgets?
|
Production Volume (units) |
Total Cost $ |
|
400 |
3430 |
|
450 |
4080 |
|
550 |
4878 |
|
600 |
4884 |
|
700 |
5913 |
|
750 |
6402 |
|
425 |
4273 |
|
475 |
4362 |
|
575 |
5089 |
|
625 |
5446 |
|
725 |
6017 |
|
775 |
6591 |
Solutions
Expert Solution
Solution:
Given: cost (Y) and Production volume (X)
We have to find the cost of producing 600 widgets by using given data.
Thus we need to find regression equation to predict Y = Cost from X= Production volume.
where
Thus we need to make following table:
| X : Production Volume (units) | Y : Total Cost $ | X^2 | XY |
| 400 | 3430 | 160000 | 1372000 |
| 450 | 4080 | 202500 | 1836000 |
| 550 | 4878 | 302500 | 2682900 |
| 600 | 4884 | 360000 | 2930400 |
| 700 | 5913 | 490000 | 4139100 |
| 750 | 6402 | 562500 | 4801500 |
| 425 | 4273 | 180625 | 1816025 |
| 475 | 4362 | 225625 | 2071950 |
| 575 | 5089 | 330625 | 2926175 |
| 625 | 5446 | 390625 | 3403750 |
| 725 | 6017 | 525625 | 4362325 |
| 775 | 6591 | 600625 | 5108025 |
 |
 |
 |
 |
Thus
Thus
and
Thus
Thus regression equation is:
Thus the cost of producing 600 widgets is:
orchestra answered 1 year agoRelated Solutions
An important application of regression in manufacturing is the estimation of cost of production. Based on...
An important application of regression in manufacturing is the
estimation of cost of production. Based on DATA (see chart below)
from Ajax Widgets relating cost (Y) to volume (X), what is the cost
per widget?
A: 8.75
B. 7.54
C: None of the answers are correct
D: 8.21
E. 7.38
Production volume (units)
Total cost ($)
400
450
550
600
700
750
425
475
575
625
725
775
5424
5657
5759
7294
7583
8603
5311
6093
6662
7380
7784
8588
An important application of regression analysis in accounting is in the estimation of cost. By collecting...
An important application of regression analysis in accounting is
in the estimation of cost. By collecting data on volume and cost
and using the least squares method to develop an estimated
regression equation relating volume and cost, an accountant can
estimate the cost associated with a particular manufacturing
volume.
In the Microsoft Excel Online file below you will find a sample
of production volumes and total cost data for a manufacturing
operation. Conduct a regression analysis to explore the
relationship...
An important application of regression analysis in accounting is in the estimation of cost. By collecting...
An important application of regression analysis in accounting is
in the estimation of cost. By collecting data on volume and cost
and using the least squares method to develop an estimated
regression equation relating volume and cost, an accountant can
estimate the cost associated with a particular manufacturing
volume. Consider the following sample of production volumes and
total cost data for a manufacturing operation.
Production Volume (units)
Total Cost ($)
400
3,700
450
4,700
550
5,100
600
5,600
700
6,100...
An important application of regression analysis in accounting is in the estimation of cost. By collecting...
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 method to develop an estimated
regression equation relating volume and cost, an accountant can
estimate the cost associated with a particular manufacturing
volume. Consider the following sample of production volumes and
total cost data for a manufacturing operation.
Production Volume (units)
Total Cost ($)
400
4,200
450
5,200
550
5,600
600
6,100
700
6,600...
An important application of regression analysis in accounting is in the estimation of cost. By collecting...
An important application of regression analysis in accounting is
in the estimation of cost. By collecting data on volume and cost
and using the least squares method to develop an estimated
regression equation relating volume and cost, an accountant can
estimate the cost associated with a particular manufacturing
volume.
In the Microsoft Excel Online file below you will find a sample
of production volumes and total cost data for a manufacturing
operation. Conduct a regression analysis to explore the
relationship...
An important application of regression analysis in accounting is in the estimation of cost. By collecting...
An important application of regression analysis in accounting is
in the estimation of cost. By collecting data on volume and cost
and using the least squares method to develop an estimated
regression equation relating volume and cost, an accountant can
estimate the cost associated with a particular manufacturing
volume.
In the Microsoft Excel Online file below you will find a sample
of production volumes and total cost data for a manufacturing
operation. Conduct a regression analysis to explore the
relationship...
An important application of regression analysis in accounting is in the estimation of cost. By collecting...
An important
application of regression analysis in accounting is in the
estimation of cost. By collecting data on volume and cost and using
the least squares method to develop an estimated regression
equation relating volume and cost, an accountant can estimate the
cost associated with a particular manufacturing volume. Consider
the following sample of production volumes and total cost data for
a manufacturing operation.
Production Volume
(units)
Total Cost
($)
400
3,500
450
4,500
550
4,900
600
5,400
700
5,900...
An important application of regression analysis in accounting is in the estimation of cost. By collecting...
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 method to develop an estimated
regression equation relating volume and cost, an accountant can
estimate the cost associated with a particular manufacturing
volume. Consider the following sample of production volumes and
total cost data for a manufacturing operation.
Production Volume (units)
Total Cost ($)
400
4,400
450
5,400
550
5,800
600
6,300
700
6,800...
An important application of regression analysis in accounting is in the estimation of cost. By collecting...
An important application of regression analysis in accounting is
in the estimation of cost. By collecting data on volume and cost
and using the least squares method to develop an estimated
regression equation relating volume and cost, an accountant can
estimate the cost associated with a particular manufacturing
volume. Consider the following sample of production volumes and
total cost data for a manufacturing operation.
Production Volume (units)
Total Cost ($)
400
4,000
450
5,000
550
5,400
600
5,900
700
6,400...
An important application of regression analysis in accounting is in the estimation of cost. By collecting...
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 method to develop an estimated
regression equation relating volume and cost, an accountant can
estimate the cost associated with a particular manufacturing
volume. Consider the following sample of production volumes and
total cost data for a manufacturing operation.
Production Volume (units)
Total Cost ($)
400
4,200
450
5,200
550
5,600
600
6,100
700
6,600...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Describe the process of STP from implementation to convergence.
- Convert the following numbers as indicated. Use as few digits in the results as necessary or...
- Java program to implement the merge sort your own and test it to sort a list...
- CODE IN C++ PLEASE Write a program to implement the algorithm that you designed in Exercise...
- Show your work please What is the discount yield, bond equivalent yield, and effective annual return...
- Case 7 of the textbook examines the rise of Wal-Mart as a corporate bohemoth. One of...
- The type of listening that involves trying to understand a situation from the speaker’s perspective is...
ADVERTISEMENT