Chapter 6 - Problem 3 DBC, a manufacturer of high end racing bicycles, is interested in determining the cost associated with the warranty costs on their bicycles. Three cost drivers are believed to be important in explaining the cost of this activity: the speed (ft/min.) of the manufacturing line, the number of defective products produced and the hours of inspection. To determine if this hypothesis is valid, the company's analysts examined the past 3 years of warranty cost data and ran a multiple regression analysis. The following output is obtained: Parameter Estimate t-stat Prat Intercept 3,300 80.00 0001 Line Speed 25 5.31 0033 Number of defects 50 2.58 0050 Inspection hours -15 -1.96 0250 R- = 0.88 Observations 250 Questions: Determine the estimated cost model for DBC's warranty repair cost