Refer to the company information in Exercise 14-35.
In exercise The method of least squares was used to develop a cost equation to predict the cost of receiving. Ninety-six data points from monthly data were used for the regression. The following computer output was received:
Intercept ......... 23,100
Slope .......... 316
The driver used was number of parts inspected.
Required:
1. What is the cost formula for a year?
2. Using the cost formula from Requirement 1, predict the cost of parts inspection for a year in which 29,000 parts are inspected.