Beltel Communications Division has estimated its production cost using a regression relationship based on the last 12 months of data as $30,000 per month plus $40 per telephone. The standard error of the production cost is $7,200. The division sells its telephones for $60 each. 

Required: 

What is the best estimate of the monthly sales in telephones needed to breakeven? 

How many telephones would the division need to sell next month to be 90% confident of earning a profit? If the division sells 2,400 telephones next month, what is the 90% confidence interval on net income? 

If the division sells 2,152 telephones next month, what is the probability it will income?

Answer rating: 100% (QA)

1 For Breakeven Sales should be equal to the sum of Production Cost and Standard Error Let y b... View the full answer