An operation research analyst investing the relationship between production lot

Question

An operation research analyst investing the relationship between production lot size (x) and the average production cost per unit (y). A study of recent operations provides the following data:

x 100 120 140 160 180 200 220 240 260 280 300

y $9.73 9.61 8.15 6.98 5.87 4.98 5.09 4.79 4.02 4.46 3.82

The analyst suspects that a piecewise linear regression model should be fit to these data. Estimate the parameters in such a model assuming that the slope of the line changes at x = 200 units. Do the data support the use of this model?

I have the answer key, but I do not know the procedure to the answer. Anyone can have we to find how to find the analysis of the piecewise linear regression?

The answer is : y = 15.1 - 0.0502x + 0.389(x-200). At Ho: B11 = 0 which gives a t = 6.53 and p = 0.000., which do support the fit of this model.

Explanation / Answer

Here p-value is less than the level of significance 0.05(assume 95% C.I.) , so we don accepet thw null hypothesias . So we can say x has significant effect on y .

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