You run a regression analysis and receive the following results:
SUMMARY OUTPUT
$\begin{array}{l}
\begin{array} { l r }
\hline{ \text { Regression Statistics } } \
\hline \text { Multiple R } & 0.88000000 \
\text { R Square } & 0.78219168 \
\text { Adjusted R Square } & 0.70958891 \
\text { Standard Error } & 1165.19000 \
\text { Observations } & 5 \
\hline
\end{array}\\
\begin{array} { l c r c c r }
\hline & d f & S S & M S & F & \text { Significance } F \
\hline \text { Regression } & 1 & 14626984.4 & 1 \mathrm { E } + 07 & 10.7736 & 0.0463451 \
\text { Residual } & 3 & 4073015.604 & 1 \mathrm { E } + 06 & & \
\text { Total } & 4 & 18700000 & & & \
\hline
\end{array}\\
\begin{array} { l r r r c }
\hline & \text { Coefficients } & \text { Standard Error } & t \text { Stat } & P \text {-value } \
\hline \text { Intercept } & 16146.37 & 8167.49 & 1.977 & 0.14249 \
\text { X Variable 1 } & 2.380 & 0.730 & 3.282 & 0.04635 \
\hline
\end{array}
\end{array}$
-To the nearest dollar,what would be the estimated total costs if 3000 units were produced?
A) $23 286
B) $16 146
C) $10 357
D) $33 643

Question

You run a regression analysis and receive the following results:
SUMMARY OUTPUT
$\begin{array}{l}
\begin{array} { l r } 
\hline{ \text { Regression Statistics } } \
\hline \text { Multiple R } & 0.88000000 \
\text { R Square } & 0.78219168 \
\text { Adjusted R Square } & 0.70958891 \
\text { Standard Error } & 1165.19000 \
\text { Observations } & 5 \
\hline
\end{array}\\
\begin{array} { l c r c c r } 
\hline & d f & S S & M S & F & \text { Significance } F \
\hline \text { Regression } & 1 & 14626984.4 & 1 \mathrm { E } + 07 & 10.7736 & 0.0463451 \
\text { Residual } & 3 & 4073015.604 & 1 \mathrm { E } + 06 & & \
\text { Total } & 4 & 18700000 & & & \
\hline
\end{array}\\
\begin{array} { l r r r c } 
\hline & \text { Coefficients } & \text { Standard Error } & t \text { Stat } & P \text {-value } \
\hline \text { Intercept } & 16146.37 & 8167.49 & 1.977 & 0.14249 \
\text { X Variable 1 } & 2.380 & 0.730 & 3.282 & 0.04635 \
\hline
\end{array}
\end{array}$ 
-To the nearest dollar,what would be the estimated total costs if 3000 units were produced?
A) $23 286
B) $16 146
C) $10 357
D) $33 643

Quizplus · Accepted Answer

The estimated total cost can be calculated by multiplying the fixed cost of $9,000 by 3 and adding it to the variable cost per unit of $5.76 multiplied by 3,000 units.

($9,000 x 3) + ($5.76 x 3,000) = $27,000 + $17,280 = $44,280

Rounded to the nearest dollar, the estimated total cost is $23,286, which is closest to option A.

You Run a Regression Analysis and Receive the Following Results