# Question: A study describes operating costs for comparable manufacturing plants operating

A study describes operating costs for comparable manufacturing plants operating in 15 different U.S. metropolitan areas. From the costs obtained in the study, the following multiple regression equation was developed: ŷ = 1.0 + 1.1x1 + 2.8x2, with ŷ = total operating cost, x1 = labor cost, and x2 = electric power cost. All costs are in millions of dollars and on an annual basis.

a. Interpret the y-intercept and the partial regression coefficients.

b. If labor costs $6 million and electric power costs $0.3 million, what is the estimated annual cost to operate the plant?

a. Interpret the y-intercept and the partial regression coefficients.

b. If labor costs $6 million and electric power costs $0.3 million, what is the estimated annual cost to operate the plant?

**View Solution:**## Answer to relevant Questions

The owner of a large chain of health spas has selected eight of her smaller clubs for a test in which she varies the size of the newspaper ad and the amount of the initiation fee discount to see how this might affect the ...Given the printout in Exercise 16.15, determine the approximate a. 90% confidence interval for the mean rating on test 4 for units that have been rated at 300, 500, and 400 on the first three tests. b. 90% prediction ...Among the results of a multiple regression analysis are the following sum-of-squares terms: SST, SSR, and SSE. What does each term represent, and how do the terms contribute to our understanding of the relationship between y ...The computer database GROWCO describes the characteristics of 100 companies identified by Fortune as among the fastest growing. Three of the variables listed are (1) estimated stock price/earnings ratio next year, (2) annual ...For the regression equation obtained in Exercise 16.19, analyze the residuals by (a) Constructing a histogram, (b) Utilizing the normal probability plot, and (c) Plotting the residuals versus each of the independent ...Post your question