Here we want to examine how increasing production affects extraction costs. Do the results of the analysis make theoretical sense? Is the model statistically significant and successfully explain how increasing production affects extraction costs. What is the overall explanatory power of the regression as measured by R square or R2 ? Do the various statistical testS show that there is a statistically significant relationship between the dependent (costs) and independent variable (cumulative production)? The student could paste the summary results from the regression analysis in MS Excel into their paper. On average during this time period, how much do costs decline for every doubling of cumulative production? Do the results of the regression analysis (or econometric approach) differ from a "back of the envelope" hand calculation? The most recent data show that cumulative production has totaled 180 million barrels and the current daily drilling rig cost is $8.85 per barrel. What would likely happen to costs if cumulative production doubled again to 360 million barrels