D Question 16 (15 points) Sable systems believes that there is a strong relationship between its...

 

 

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D Question 16 (15 points) Sable systems believes that there is a strong relationship between its monthly factory maintenance costs and the number of hydrogen fuel cells produced in its manufacturing facility. Sable has collected the data, shown below, from last year's production volume and maintenance costs, and hopes to be able to use it to analyze this relationship. January February March April May June July August September October Units Produced 750 600 720 810 780 920 500 625 Maintenance Costs 760 9000 8100 8400 9700 625 8250 9100 9950 7200 8300 9050 *15 pts MacBook Pro November December 815 875 9650 9850 Required: 1. Use High-Low analysis to determine the cost function (variable cost per unit and fixed cost) that relates units produced to maintenance costs. State the function in TC = FC + VC'units form. 2. The partial results from a least squares regression performed on the dame data gave the following: R-square 9498 Intercept - 3986 Slope - 6.70 Compare these results to you answer above and comment briefly. What does the R-square coefficient indicate regarding the strength of the relationship? 3. Make predictions using both models at a production level of 1200 units. Note any concern with making the prediction at this level of production. D Question 16 (15 points) Sable systems believes that there is a strong relationship between its monthly factory maintenance costs and the number of hydrogen fuel cells produced in its manufacturing facility. Sable has collected the data, shown below, from last year's production volume and maintenance costs, and hopes to be able to use it to analyze this relationship. January February March April May June July August September October Units Produced 750 600 720 810 780 920 500 625 Maintenance Costs 760 9000 8100 8400 9700 625 8250 9100 9950 7200 8300 9050 *15 pts MacBook Pro November December 815 875 9650 9850 Required: 1. Use High-Low analysis to determine the cost function (variable cost per unit and fixed cost) that relates units produced to maintenance costs. State the function in TC = FC + VC'units form. 2. The partial results from a least squares regression performed on the dame data gave the following: R-square 9498 Intercept - 3986 Slope - 6.70 Compare these results to you answer above and comment briefly. What does the R-square coefficient indicate regarding the strength of the relationship? 3. Make predictions using both models at a production level of 1200 units. Note any concern with making the prediction at this level of production.

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The question refers to Sable Systems data analysis which has collected monthly data on units produced and maintenance costs over a year and aims to determine the relationship between these two variabl... View the full answer