Method of Least Squares; Budgeted Time Period Is Different from Time Period Used to Generate Results The method of least squares was used to develop a cost equation to predict the cost of receiving parts in a manufacturing company; 96 data points from monthly data were used for the regression. The following computer output was received: Intercept 106,327 Slope 193 The driver used was number of parts inspected.

Required: 1. What is the cost formula for a year?

Total annual cost of receiving = ____x ( $________) + ( $________ Number of parts inspected in a year )

2. Using the cost formula from Requirement 1, predict the cost of parts inspection for a year in which 29,000 parts are inspected. Total annual cost of receiving = $