An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular 8 manufacturing volume. Consider the following sample of production volumes and total cost data for a manufacturing operation. A-Z 9. Production Volume (units) Total Cost ($) 400 3800 450 4300 550 4800 600 5600 650 6300 750 6700 The data on the production volume r and total cost y for particular manufacturing operation were used to develop the estimated regression equation y = 320.00 + 8.70x. a. The company's production schedule shows that 700 units must be produced next month. Predict the total cost for next month. y* = (to 2 decimals) b. Develop a 98% prediction interval for the total cost for next month. s (to 2 decimals) t-value (to 3 decimals) Spred (to 2 decimals) Prediction Interval for an individual Value next month A+ ( to whole number) $6.000