An accountant wishes to predict direct labor cost ( y ) on the basis of the batc

Question

An accountant wishes to predict direct labor cost (y) on the basis of the batch size (x) of a product produced in a job shop. Data for 12 production runs are given in the table below, along with the Excel output from fitting a least squares regression line to the data.

Find b1 and b0. (Round your intermediate value and final answers to 4 decimal places. Negative amounts should be indicated by a minus sign.)

  b1 is the estimated (Click to select)decreaseincrease in (Click to select)mean labor costbatch size for every 1 unit increase in
  (Click to select)mean labor costbatch size.

  b0 is the estimated (Click to select)batch sizemean labor cost when (Click to select)batch sizemean labor cost = 0; (Click to select)yesno.

Write the least squares prediction equation. (Round your answers to 4 decimal places. Negative amounts should be indicated by a minus sign.)

Use the least squares line to obtain a point estimate of the mean direct labor cost for all batches of size 60 and a point prediction of the direct labor cost for an individual batch of size 60. (Round your answer to 3 decimal places.)

An accountant wishes to predict direct labor cost (y) on the basis of the batch size (x) of a product produced in a job shop. Data for 12 production runs are given in the table below, along with the Excel output from fitting a least squares regression line to the data.

Explanation / Answer

This question is from

Business Statics in Practice by BOWERMAN

in page no : 529 or 13.7

i:e the direct labor cost case.

just look in the solution manual of this book.

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