Sales = Output TVC ($) 102,813 176,163 196,121 222,885 226,356 296,416 378,446 4
ID: 1177386 • Letter: S
Question
Sales = Output
TVC ($)
102,813
176,163
196,121
222,885
226,356
296,416
378,446
450,666
579,696
607,082
624,680
636,133
201,953
340,608
377,940
432,863
441,714
629,267
867,596
1,103,807
1,701,125
1,917,861
2,195,352
2,479,195
a. Using regression analysis, find an equation that best fits the data to represent the TVC function.
b. At what sales/output level will marginal costs (MC) reach a minimum?
c. Estimate the value of TVC for sales/output level 250,000 units, and calculate the 95% confidence interval for your estimate.
Sales = Output
TVC ($)
102,813
176,163
196,121
222,885
226,356
296,416
378,446
450,666
579,696
607,082
624,680
636,133
201,953
340,608
377,940
432,863
441,714
629,267
867,596
1,103,807
1,701,125
1,917,861
2,195,352
2,479,195
Explanation / Answer
Regression Equation(y) = a + bx
Slope(b) = (N%u03A3XY - (%u03A3X)(%u03A3Y)) / (N%u03A3X2 - (%u03A3X)2) =3.978
Intercept(a) = (%u03A3Y - b(%u03A3X)) / N =-433466.715
where
x and y are the variables.
b = The slope of the regression line
a = The intercept point of the regression line and the y axis.
N = Number of values or elements
X = First Score
Y = Second Score
%u03A3XY = Sum of the product of first and Second Scores
%u03A3X = Sum of First Scores
%u03A3Y = Sum of Second Scores
%u03A3X2 = Sum of square First Scores
In our que, N=12
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