A manufacturer produces custom metal blanks that are used by its customers for computer- aided machining. The customer sends a design via computer, and the manufacturer comes up with an estimated cost per unit, which is then used to determine a price for the customer. The data for the analysis were sampled from the accounting records of 29 orders filled during the previous three months. Formulate a regression model with Y as the cost per unit and X as the material cost per unit. Material Average Cost Cost ($/unit) ($/unit) 1.61 54.06 2.73 28.98 3.28 40.01 2.24 31.09 1.20 37.01 5.77 53.71 3.06 34.38 2.03 32.89 1.92 48.97 1.52 40.05 4.21 57.65 2.17 34 1.60 36.16 2.22 24.73 1.12 36.27 2.00 26.46 3.16 39.86 3.91 43.19 4.24 55.68 2.14 38 1.82 48.9 2.35 34.84 0.85 33.21 1.48 40.37 Copy-and-paste the above data into software of your choice. Run a regression analysis using y = average cost per unit and x = material cost per unit. What is the regression equation? Round to the nearest tenth (1 decimal place).
Accepted Solution
A:
Answer:[tex]y = 3.80721x+ 30.30222[/tex]Step-by-step explanation: Material cost x Average cost y1.61 54.06 2.73 28.98 3.28 40.01 2.24 31.091.20 37.015.77 53.713.06 34.382.03 32.891.92 48.971.52 40.054.21 57.652.17 34 1.60 36.16 2.22 24.73 1.12 36.27 2.00 26.46 3.16 39.86 3.91 43.19 4.24 55.68 2.14 38 1.82 48.9 2.35 34.84 0.85 33.21 1.48 40.37Now plot the given points in the regression calculator .So, The required equation : [tex]y = 3.80721x+ 30.30222[/tex]Where y = average cost per unit and x = material cost per unit. Hence the regression equation for the given data is [tex]y = 3.80721x+ 30.30222[/tex]