Louis Katz, a cost accountant at Papalote Plastics, Inc. (PPI), is analyzing the manufacturing costs of a molded plastic telephone handset produced by PPI. Louis's independent variable is production lot size (in 1,000's of units), and his dependent variable is the total cost of the lot (in $100's). Regression analysis of the data yielded the following tables: For a lot size of 10,000 handsets, Louis' model predicts total cost will be ___.
A) $4,031.80
B) $757.60
C) $3,960.20
D) $354.01
E) $1873.077

Question

Louis Katz, a cost accountant at Papalote Plastics, Inc. (PPI), is analyzing the manufacturing costs of a molded plastic telephone handset produced by PPI. Louis's independent variable is production lot size (in 1,000's of units), and his dependent variable is the total cost of the lot (in $100's). Regression analysis of the data yielded the following tables:   For a lot size of 10,000 handsets, Louis' model predicts total cost will be ___.
A) $4,031.80 
B) $757.60 
C) $3,960.20 
D) $354.01 
E) $1873.077

Quizplus · Accepted Answer

The Answer of Louis Katz, a cost accountant at Papalote Plastics, Inc. (PPI), is analyzing the manufacturing costs of a molded plastic telephone handset produced by PPI. Louis's independent variable is production lot size (in 1,000's of units), and his dependent variable is the total cost of the lot (in $100's). Regression analysis of the data yielded the following tables:   For a lot size of 10,000 handsets, Louis' model predicts total cost will be ___.
A) $4,031.80 
B) $757.60 
C) $3,960.20 
D) $354.01 
E) $1873.077

Louis Katz, a Cost Accountant at Papalote Plastics, Inc