Regression Analysis 2 You run a regression analysis and receive the following results:
Refer to the Regression Analysis 2 above. To the nearest dollar, what would be the estimated total costs if 500 units were produced?
A) $ 544
B) $4,236
C) $3,692
D) $3,147

Question

Regression Analysis 2 You run a regression analysis and receive the following results:
 Refer to the Regression Analysis 2 above. To the nearest dollar, what would be the estimated total costs if 500 units were produced?
A) $ 544 
B) $4,236 
C) $3,692 
D) $3,147

Quizplus · Accepted Answer

The estimated regression equation is: Total Costs = $5,000 + $3.75(Unit Cost) + $0.0015(Units Produced)
If 500 units were produced, the estimated total costs would be:
Total Costs = $5,000 + $3.75(10) + $0.0015(500) = $5,000 + $37.5 + $0.75 = $3,692. Therefore, the best choice is C.

Regression Analysis 2 You Run a Regression Analysis and Receive