Question
Problem 4-4 An industrial engineer wishes to establish a relationship between cost per production batch of laminated wafers and size of run. The following data
Problem 4-4 An industrial engineer wishes to establish a relationship between cost per production batch of laminated wafers and size of run. The following data have been obtained from previous runs:
| Size Cost |
| 1550 16679 |
| 786 23898 |
| 2175 10899 |
| 1234 13121 |
| 852 21919 |
| 1505 29925 |
| 1213 15627 |
| 1616 13801 |
| 2120 16419 |
| 1264 22974 |
| 3050 29349 |
| 3089 31237 |
| 1128 15982 |
| 1963 22215 |
| 1215 14459 |
| 2033 21384 |
| 1518 16497 |
| 1414 17510 |
| 2207 23483 |
| 1467 18012 |
(a) Use the method of least squares to find the estimated regression equation. Slope=? Intercept=?
(b) For a run of 2,000 units, use your regression line to predict the total production cost for a batch of this size. $=?
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An Introduction to the Mathematics of financial Derivatives
Authors: Salih N. Neftci
2nd Edition
978-0125153928, 9780080478647, 125153929, 978-0123846822
