(a) Using the data below for variables X (output) and Y (total cost), calculate an equation...

 

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(a) Using the data below for variables X (output) and Y (total cost), calculate an equation to determine the expected level of costs, for any given volume of output, using the least squares method. Time period 1 Output ('000 units) 20 Total cost (5000) 2 16 82 3 4 24 22 70 90 5 18 85 73 (b) Prepare a budget for total costs if output is 22,000 units. (c) Confirm that the degree of correlation between output and costs is high by calculating the correlation coefficient. (a) Using the data below for variables X (output) and Y (total cost), calculate an equation to determine the expected level of costs, for any given volume of output, using the least squares method. Time period 1 Output ('000 units) 20 Total cost (5000) 2 16 82 3 4 24 22 70 90 5 18 85 73 (b) Prepare a budget for total costs if output is 22,000 units. (c) Confirm that the degree of correlation between output and costs is high by calculating the correlation coefficient.

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a To determine the equation to estimate the expected level of costs for any given volume of output w... View the full answer