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Question 2 _(9 marks) XYZ Company used regression to estimate the cost of its major product. XYZ used data from the past 16 months of
Question 2 _(9 marks) XYZ Company used regression to estimate the cost of its major product. XYZ used data from the past 16 months of operations. The resulting equation was Total cost $185,000 per month + S18 per unit sold The equation standard error of the estimate is $9.500 XYZ wants to make projections on next month's income. Refer to the "Present value and -distribution tables" PDF document. Required: You must provide all the detailed supporting calculations. If sales are 30,000 units at S25 per unit what is the 90% confidence interval on net income? (3 marks) a b How many units would XYZ need to sell at $30 per urut to be 95% confident of earning a profit of at least $20.0002 (3 marks) c. How many units would XYZ need to sell at S25 per unit to be 85% confident to break even? (3 marks) Question 2 _(9 marks) XYZ Company used regression to estimate the cost of its major product. XYZ used data from the past 16 months of operations. The resulting equation was Total cost $185,000 per month + S18 per unit sold The equation standard error of the estimate is $9.500 XYZ wants to make projections on next month's income. Refer to the "Present value and -distribution tables" PDF document. Required: You must provide all the detailed supporting calculations. If sales are 30,000 units at S25 per unit what is the 90% confidence interval on net income? (3 marks) a b How many units would XYZ need to sell at $30 per urut to be 95% confident of earning a profit of at least $20.0002 (3 marks) c. How many units would XYZ need to sell at S25 per unit to be 85% confident to break even
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