An important application of regression in manufacturing is the estimation of cost of

production. Based on DATA from Ajax Widgets relating cost (Y) to volume (X), what is the cost per widget?

Production Volume (units) Total Cost ($)

400 5424

450 5657

550 5759

600 7294

700 7583

750 8603

425 5311

475 6093

575 6662

625 7380

725 7784

775 8588

Choose your answer from the following:

a) 7.54

b) 8.75

c) 7.38

d) None of the answers are correct

e) 8.21

I got b) 8.75 for an answer, did I do it right? Would you explain the process on Excel?