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View Go Tools Window Help ACCIO 221 2021 51 Assignment 1.pdf (page 4 of 4) A Q Search Highlight Rotate Markup No calculations are necessary. Assume the average passengers on each cruise are different than previously provided . B2: 2% marks (word limit, maximum 80 words] Someone has kindly done the calculations and determined the following when determining whether to make or buy this new line of product item Pink fluorescent pen: At 6,695 units, the relevant costs to make Pink fluorescent pen are $139,128 while the price to buy is $132,226. At 10,695 units, the relevant costs to make Pink fluorescent pen are $204,328 while the price to buy is $211,226 That the point of indifference to make or buy Pink fluorescent pen is 8,695 units. Explain what these calculated relevant costs and the point of indifference convey to the business owner at the different units of volume (at 6,695, 8,695 and 10,695 units). . B3: 1% marks [word limit: maximum 50 words (a) Is it true that a regression model will always produce better results when more variables are added to the model? Explain the reasoning behind this notion and which regression statistics is/are affected. (b) Explain which one of the below two is a better model for predicting y, and justify how you came to that conclusion based on the regression results provided SET 81 Regression Statistics R Square 0.741895522 Adjusted Square 0.706699456 Observations 26 SET 2 Regression Statistics R Square 9.744278747 Adjusted R Square 0.695569937 Observations 26 Intercept 1 X2 Confidents P-value 189.242169684 0.007376842 3.802529966 5.965-06 4510172368 0.000223761 Intercept X2 X2 X Coefficients 47.968280581 3.220303910 4.665514514 0.727686438 P.value 0.416053996 2.2181E-05 0.000347047 0.181404125 1.991154166 0.174486973 X5 -0.483188623 0.789992130 16 le 8 N B2:2% marks [word limit: maximum 80 words) Someone has kindly done the calculations and determined the following when determining whether to make or buy this new line of product item Pink fluorescent pen: . At 6,695 units, the relevant costs to make Pink fluorescent pen are $139,128 while the price to buy is $132,226. At 10,695 units, the relevant costs to make Pink fluorescent pen are $ 204,328 while the price to buy is $211,226. That the point of indifference to make or buy Pink fluorescent pen is:8,695 units. Explain what these calculated relevant costs and the point of indifference convey to the business owner at the different units of volume (at 6,695, 8,695 and 10,695 units). B3: 1% marks (word limit: maximum 50 words) (a) Is it true that a regression model will always produce better results when more variables are added to the model? Explain the reasoning behind this notion and which regression statistics is/are affected. (b) Explain which one of the below two is a better model for predicting y, and justify how you came to that conclusion based on the regression results provided. SET #1 Regression Statistics R Square 0.741895522 Adjusted R Square 0.706699456 Observations 26 SET #2 Regression Statistics R Square 0.744278747 Adjusted R Square 0.695569937 Observations 26 Intercept X1 X2 Coefficients P-value 189.242169684 0.007376842 3.802529966 5.965E-06 4.510172368 0.000223761 Intercept X1 X2 X3 Coefficients 47.968280581 3.220303910 4.665514514 0.727686438 P-value 0.416053996 2.2181E-05 0.000347047 0.181404126 X4 -1.991154166 0.174486973 XS -0.483188623 0.789992130