Sgegede Productions, makers of lightweight armor has been collecting data on the costs of

running its factory in eMbalehle, New Jersey. Let X be the number of thousands of units

produced and Y be the total cost in thousands to run the factory for a given month. Data for

five months are given below:

X Y XY X2 Y2

5 35 175 25 1225

8 44 352 64 1936

12 56 672 144 3136

20 80 1600 400 6400

22 86 1892 484 7396

a. Draw a Scatter Diagram

b. Derive the equation for the least squares regression line which will best fit the data

c. Does the sign of the slope coefficient make economic sense? Interpret its meaning.

d. Determine Point Estimation

e. Determine the Standard Error

f. Determine the coefficient of correlation, coefficient of determination and Adjusted r2.

What do these coefficients tell you?

g. Do hypothesis testing using = 0.05

Please complete every single step. Thank you.