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Consider the following sample of production volumes and total cost data for a manufacturing operation. Production Volume (units) Total Cost ($) 400 4000 450 5000
Consider the following sample of production volumes and total cost data for a manufacturing operation.
Production Volume (units) | Total Cost ($) |
400 | 4000 |
450 | 5000 |
550 | 5400 |
600 | 5800 |
700 | 6300 |
750 | 7000 |
This data was used to develop an estimated regression equation, ? = 1,305.33 + 7.44x, relating production volume and cost for a particular manufacturing operation. Use ? = 0.05 to test whether the production volume is significantly related to the total cost. (Use the F test.)
State the null and alternative hypotheses:
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