Required: (8 Marks) i Estimate the total cost function using the ordinary least squares method (4 Marks) 11 Interpret the coefficients of the estimated regression model Estimate the coefficient of determination and explain to what extent does variation in number of cakes explain the cost (8 Marks) 111 4. QUESTION TWO (15 MARKS) The following data shows the quarterly number of passengers who used KQ airplanes in three consecutive years 3 2 3.2 1 7.9 Quarter 5.0 3.8 22 8.2 2019 5.2. 4.1 2.9 2020 9.1 5.8 3.2 2021 (8 Marks) Required (7 Marks) 1 Compute the four point moving average and center them Decompose the time series data using the additive model II. QUESTION THREE (15 MARKS) a) The Pearson's and Spearman's correlation coefficient sometimes generate different answers but similar conclusions. Explain the cause of these variations (2 Marks) b) Explain the strengths and weaknesses of the Pearson's product moment and the Spearman's correlation coefficient (4 Marks) c) ABC Ltd manufactures a single product. During the month of June 2019, 500 units were produced incurring the following expenses: - produced units = 500 units Required: (8 Marks) i Estimate the total cost function using the ordinary least squares method (4 Marks) 11 Interpret the coefficients of the estimated regression model Estimate the coefficient of determination and explain to what extent does variation in number of cakes explain the cost (8 Marks) 111 4. QUESTION TWO (15 MARKS) The following data shows the quarterly number of passengers who used KQ airplanes in three consecutive years 3 2 3.2 1 7.9 Quarter 5.0 3.8 22 8.2 2019 5.2. 4.1 2.9 2020 9.1 5.8 3.2 2021 (8 Marks) Required (7 Marks) 1 Compute the four point moving average and center them Decompose the time series data using the additive model II. QUESTION THREE (15 MARKS) a) The Pearson's and Spearman's correlation coefficient sometimes generate different answers but similar conclusions. Explain the cause of these variations (2 Marks) b) Explain the strengths and weaknesses of the Pearson's product moment and the Spearman's correlation coefficient (4 Marks) c) ABC Ltd manufactures a single product. During the month of June 2019, 500 units were produced incurring the following expenses: - produced units = 500 units