Regression - Interpretation

Question 26 (4 points)

An important application of regression in manufacturing is the estimation of cost of production. Based on DATAfrom Ajax Widgets relating cost (Y) to volume (X), what is the cost per widget?

Question 26 options:

	8.21
	7.54
	8.75
	7.38
	None of the answers are correct

Hide hint for Question 26
What is the regression equation? What do the regression constants mean? 1 widget is a production volume of 1.

Production Volume (units)	Total Cost ($)
400	4384
450	4722
550	5233
600	6091
700	6664
750	6734
425	4423
475	4905
575	5746
625	5709
725	7081
775	7094