Exercise 14.6 (Static) THE DIRECT LABOR COST CASE An accountant wishes to predict direct labor cost on the basis of the batch size () of a product produced in a job shop. Data for 12 production runs are given in the table below, along with the Excel output from fitting a least squares regression line to the data. Direct Labor Cost Data Direct Labor Batch Cost, y ($1005) Size, x 71 5 663 62 381 35 138 12 861 83 145 14 493 46 548 52 251 23 1024 100 435 41 772 75 Click here for the Excel Data File Batch Size Line Fit Plot 1000 LaborCost = 18.488 +10.146 * BSize 800 8 600 3 400 200 Click here for the Excel Data File Batch Size Line Fit Plot 1000 LaborCost = 18.488 +10.146 BSize 800 Book Hint 600 Labor Cost wint 400 Fences 200 0 20 80 100 40 60 Batch Size (a) Calculate bi and bg. (Round intermediate steps to 4 decimals places.) b1 b0 (b) Interpret the meanings of bg and bq. Does the interpretation of bo make practical sense? bo is the estimated b1 is the estimated when mean labor cost batch size increase in mean labor cost 0: yes for every 1 unit increase in (c) Write the least squares prediction equation (Round your answers to 4 decimal places.) yahut X at (c) Write the least squares prediction equation. (Round your answers to 4 decimal places.) nces y-hat (d) Use the least squares line to obtain a point estimate of the mean direct labor cost for all batches of size 60 and a point prediction of the direct labor cost for an individual batch of size 60. (Round your answer to 3 decimal places.) y-hat(60) = hundreds of dollars. C1 fx A B D Batch Size 5 62 35 12 83 1 Direct Labor Cost Data 2 3 Direct Labor Cost 4 Y 5 71 6 663 7 381 8 138 9 861 10 145 11 493 12 548 13 251 14 1024 15 435 16 772 17 18 19 20 21 22 23 24 25 26 27 28 29 14 46 52 23 100 41 75