Regression Analysis: Calculation of Total Cost

Terrific Taffy is a manufacturer of saltwater taffy. Recently, the owner, Melinda Gross, asked her controller to perform a regression analysis on production costs. Melinda believes that pounds of taffy produced drive all of the company's production costs. The controller generated the following regression output:

	R Square						0.50688
	Standard Error						1.43764
Analysis of Variance
	DF			Sum of Squares			Mean Square
Regression	1			418.52992			481.52992
Residual	197			407.16375			2.06682
F = 202.49935	Signif.F = 0.0000
Variables in the Equation
Variable	Coefficients			Standard Error			t Stat			P-Value
Pounds	7.940			0.055794			14.230			0.0000
Intercept	205.070			0.261513			20.780			0.4361

Required:

Calculate an estimated total cost, assuming that Terrific Taffy manufactures 7,500 pounds of taffy. Round to the nearest whole dollar. $