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A cost accountant has derived the following data on the weekly output of standard size boxes from a factory. Week Output (thousands) Total cost (thousand

A cost accountant has derived the following data on the weekly output of standard size boxes from a factory.

Week Output (thousands) Total cost (thousand dollars)
1

20

60
2 2 25
3 4 26
4 23 66
5 18 49
6 14 48
7 10 35
8 8 18
9 13 40

(a) Determine the regression equation from which we can predict the total cost in terms of the weekly production. (4%)

(b) In the following week it is planned to produce 15,000 standard size boxes. Estimate the total cost of producing this quantity. (1%)

(c) Compute the linear correlation coefficient. Interpret the result.

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