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Dennis_Churaev [7]
2 years ago
14

6. Parker, Inc. used Excel to run a least-squares regression analysis, which resulted in the following output: Regression Statis

tics Multiple R 0.8274 R Square 0.8229 Observations 26 Coefficients Standard Error T Stat Intercept 23,859 5,196 3.65 Production (X) 3.13 0.2765 11.19 What total cost would Parker predict for a month in which they sold 3,500 units
Mathematics
1 answer:
aleksley [76]2 years ago
4 0

Answer:

"34,814" is the correct solution.

Step-by-step explanation:

The given values are:

Intercept coefficient,

\beta_0 = 23,859

Production coefficient,

\beta_1 = 3.13

Units sold,

x = 3,500

Now,

The total cost will be:

⇒  \bar{y}=\beta_0+\beta_1 x

On substituting the estimated values, we get

⇒     =23,859+3.13\times 3,500

⇒     =23,859+10,955

⇒     =34,814

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