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Ohio Swiss Milk Products manufactures and distributes ice cream in Ohio, Kentucky, and West Virginia. The company wants to expand operations by locating another plant
Ohio Swiss Milk Products manufactures and distributes ice cream in Ohio, Kentucky, and West Virginia. The company wants to expand operations by locating another plant in northern Ohio. The size of the new plant will be a function of the expected demand for ice cream within the area served by the plant. A market survey is currently under way to determine that demand. Ohio Swiss wants to estimate the relationship between the manufacturing cost per gallon and the number of gallons sold in a year to determine the demand for ice cream and, thus, the size of the new plant. The following data have been collected: Plant Cost per Thousand Gallons (Y) Thousands of Gallons Sold (X) 1 $1 comma 035 441.2 2 991 488.8 3 1 comma 045 237.1 4 1 comma 006 372.1 5 1 comma 067 225.5 6 1 comma 068 258.6 7 970 584.8 8 997 414.0 9 1 comma 061 251.6 10 1 comma 021 381.7 Total $10 comma 261 3 comma 655.4 Part 2 a. Develop a regression equation to forecast the cost per thousand gallons as a function of the number of thousands of gallons produced. The forecasting model is given by the equation Yequals enter your response hereminus enter your response hereX. (Enter your responses rounded to two decimal places.)
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