Strategic Management relates a study in economies of scale in the paper industry. the data is found in the following table.

x :50 60 73 82 90 215 230 260

y :1.8 1.6 1.5 1.25 0.95 0.60 0.50 0.54

Here x is the weighted average machine size in tons per hour, and y is the employee-hours per ton.

A. Determine the best-fitting line using least squares and the square of the correlation coefficient. The best-fitting line is W(x) = ________.

The square of the correlation coefficient is r2 = ______.

B. Is there an advantage to using a large machine? Pick the correct answer.

The smaller the machine, the less the employee-hours.

The larger the machine, the less employee-hours.

The larger the machine, the more employee-hours

The larger the machine, the employee-hours do not change.

C. What does this model predict the weighted average machine size will be is the employee-hours per ton is 1.00? (Round to the nearest ton.) The machine will make ______ tons for 1 employee-hour per ton.