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Valentine is a manufacturer of fine chocolates. Recently, the owner, Melinda Gross, asked her controller to perform a regression analysis on production costs. Melinda believes
Valentine is a manufacturer of fine chocolates. Recently, the owner, Melinda Gross, asked her controller to perform a regression analysis on production costs. Melinda believes that pounds of chocolate produced drive all of the company's production costs. The controller generated the following regression output:
RSquare | 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 | tStat | 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 Valentine manufactures 5,000 pounds of chocolate. Round to the nearest whole dollar. $________?______
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