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QUESTION 19 Crazy Sam's Deals produces and sells widgets each month. The accounts used multiple regression to be able to estimate their total monthly
QUESTION 19 Crazy Sam's Deals produces and sells widgets each month. The accounts used multiple regression to be able to estimate their total monthly costs with two factors: units produced and the average monthly production lot size. The output from Excel is shown below. SUMMARY OUTPUT Regression Statistics Multiple R 0.88 R Square 0.78 Adjusted R Square 0.73 Standard Error 35436.50 Observations 12 Coefficients Standard Error Stor Intercept 482171.92 Production (Units) 2.49 98519.61 0.65 4.89 3.82 0.00 0.00 P-value Lower 95% 259305.07 1.01 Upper 95% 705038.76 3.97 Average Monthly Production Lot Size 11770.94 4799.06 2.45 0.04 914.72 22627.16 What would total cost be if the company produced 92.000 units and had an average monthly production lot size of 267 (do not round sub-calculations) $570,560.94 $ 493,945.35 $1,017,296.36 $535.124.44
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