A small company has developed an improved process for making solar panels. The company needs to set its prices and wants those prices to ref lect the efficiencies of producing larger batches. The data show the following:

#Units                          Cost per Unit
10.................................................7.389
20.................................................6.049
30.................................................4.953
40.................................................4.055
50.................................................3.320
60.................................................2.718
70.................................................2.459
80.................................................2.225
90.................................................2.013
100...............................................1.822
120...............................................1.648
140...............................................1.491
160...............................................1.349
180...............................................1.221
200...............................................1.105

A scatterplot of Cost per Unit vs. #Units looks like this:

What should be done to make the relationship more nearly linear?

Transcribed Image Text:

6.0 返 4.5+ 3.0 - 1.5+ 120 160 200 80 40 #Units Cost per Unit