The following data relates the machine hours incurred in the production process. The company is considering...
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The following data relates the machine hours incurred in the production process. The company is considering machine hours to estimate manufacturing costs. Variable Constant Independent variable 230 r2 = 0.82 y Standard Error 82.73 105.50 Coefficient 115 t-Value 1.39 not 2.18 a. What is the cost estimation equation using the data above? b. What is the estimated cost of producing 500 units? c. Is machine hours reliable in estimating manufacturing costs in this exampfe? Why or why not - give one reason based on the statistical data provided in the table above. The following data relates the machine hours incurred in the production process. The company is considering machine hours to estimate manufacturing costs. Variable Constant Independent variable 230 r2 = 0.82 y Standard Error 82.73 105.50 Coefficient 115 t-Value 1.39 not 2.18 a. What is the cost estimation equation using the data above? b. What is the estimated cost of producing 500 units? c. Is machine hours reliable in estimating manufacturing costs in this exampfe? Why or why not - give one reason based on the statistical data provided in the table above.
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