METHOD OF LEAST SQUARES, DEVELOPING AND USING THE COST FORMULA The method of least squares was used
Question:
METHOD OF LEAST SQUARES, DEVELOPING AND USING THE COST FORMULA The method of least squares was used to develop a cost equation to predict the cost of receiving. Ninety-six data points from monthly data were used for the regression. The following computer output was received:
Intercept 23,100 Slope 316 The driver used was number of parts inspected.
Required:
. What is the cost formula?
. Using the cost formula from Requirement 1, identify each of the following: independent variable, dependent variable, variable rate, and fixed cost per month.
. Using the cost formula, predict the cost of parts inspection for a month in which 2,500 parts are inspected.
Exercise
Step by Step Answer:
Cornerstones Of Financial Accounting Current Trends Update
ISBN: 9781111527952
1st Edition
Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen