A regression line is a graphic representation of the regression equation expressing the hypothesized relationship between an outcome or dependent variable and one or more predictors or independent variables;

y= $2.01*1.93^{x}$

Correlation:

r=0.964

R-squared:

r²=0.9292

Hence, value of a and b is 2.17 and 1.95.

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2 years ago

The Retread Tire Company recaps tires. The fixed annual cost of the recapping operation is $65,000. The variable cost of recappi

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Part a) Total Cost

Total Cost for recapping the tires is the sum of fixed cost and the variable cost. i.e.

The total cost is ( $65,000 fixed) + (15,000 x $7.5)

=$65,000+$112,500

=$177,500

Part b) Total Revenue

Revenue from 1 tire = $25

Total tires recapped = 15000

So, Total revenue = 15000 tires x $25/tire

Total Revenue =$375,000

Part c) Total Profit

Total Profit = Revenue - Cost

Using the above values, we get:

Profit = $375,000 - $177,500

Profit = $197,500

Part d) Break-even Point

Break-even point point occurs where the cost and the revenue of the company are equal. Let the break-even point occurs at x-tires. We can write:

For break-even point

Cost of recapping x tires = Revenue from x tires

65,000 + 7.5 x = 25x

65,000 = 17.5 x

x = 3714 tires

Thus, on recapping 3714 tires, the cost will be equal to the revenue generating 0 profit. This is the break-even point.

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3 years ago