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 manufacturing volume.

Consider the following sample of production volumes and total cost data for a manufacturing operation.

Production Volume $($units$)$

$400$

$450$

$550$

$600$

$700$

$750$

Total Cost $($$$)$

$4,100$

$5,100$

$5,500$

$6,000$

$6,500$

$7,100$

a$.$ Use these data to develop an estimated regression equation that could be used to predict the total cost for a given production volume. Do not round intermediate calculations.

Compute $61$ and bo $($to $1$ decimal$).$ Do not round intermediate calculations. b$1$

bo

Complete the estimated regression equation $($to $1$ decimal$).$ Do not round intermediate calculations.

j$=$

$$What is the variable cost per unit produced $($to $2$ decimal$)?$ Do not round intermediate calculations.

$$Compute the coefficient of determination $($to $3$ decimals$).$ Do not round intermediate calculations. Note: report r$?$ between $0$ and $1.$

What percentage of the variation in total cost can be explained by the production volume $($to $1$ decimal$)?$ Do not round intermediate