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Category > Management Posted 22 Feb 2018 My Price 6.00

Varic Company

EXERCISE 2A–2 Least-Squares Regression [LO3, LO8]

One of Varic Company’s products goes through a glazing process. The company has observed glazing costs as follows over the last six weeks:

 

 

 

1 . . . . . . . . .    .

8

$270

2 . . . . . . . . .    .

5

$200

3 . . . . . . . . .    .

10

$310

4 . . . . . . . . .    .

4

$190

5 . . . . . . . . .    .

6

$240

6 . . . . . . . . .    .

9

$290

 

For planning purposes, the company’s management wants to know the amount of variable glazing cost per unit and the total fixed glazing cost per week.

Required:

1.       Using the least-squares regression method, estimate the variable and fixed elements of the glazing cost.

2.       Express the cost data in (1) above in the form Y = a + bX.

3.       If the company processes seven units next week, what would be the expected total glazing cost?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 22 Feb 2018 09:02 PM My Price 6.00

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