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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
14-42. A manufacturer produces a wash-down motor for the food service industry. The company manufactures the motors to order by modifying a base model to meet
the specifications requested by the customer. The motors are produced in a batch environment with the batch size equal to the number ordered. The manufacturer has recently sampled 27 customer orders. The motor manufacturer would like to determine if there is a relationship between the cost of producing the order and the order size so that it could estimate the cost of producing a particular size order. The sampled data are contained in the file Washdown Motors.
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a.    Use the sample data to estimate the least squares regression model.
b.   Provide an interpretation of the regression coefficients.
c.    Test the significance of the overall regression model using a significance level of 0.01.
d.   The company has just received an order for 30 motors. Use the regression model developed in part a to estimate the cost of producing this particular order.
e.   Referring to part d, what is the 90% confidence interval for an average cost of an order of 30 motors?
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