Question
The method of least squares was used to develop a cost equation to predict the cost of receiving purchased parts at a video game manufacturer.
The method of least squares was used to develop a cost equation to predict the cost of receiving purchased parts at a video game manufacturer. Ninety-six data points from monthly data were used for the regression. The following computer output was received: Intercept 159,900 Slope 255 The cost driver used was number of parts inspected. Required: 1. What is the cost formula for a year? Total annual cost of receiving = ( fill in the blank 1 x $fill in the blank 2 ) + ( $fill in the blank 3 ) 2. Using the cost formula from Requirement 1, predict the cost of parts inspection for a year in which 15,700 parts are inspected. Total annual cost of receiving = $fill in the blank 5
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