Valentine is a manufacturer of fine chocolates. Recently, the owner, Melinda Gross, asked her controller to perform a regression analysis on production costs. Melinda believes that pounds of chocolate produced drive all of the company’s production costs. The controller generated the following regression output:

Required

Calculate an estimated total cost assuming that Valentine manufactures 5,000 pounds of chocolate.

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R Square 0.50688 Standard Error 1.43764 Analysis of Variance DF Sum of Squares Mean Square Regression 1 418.52992 481.52992 Residual 197 407.16375 2.06682 F-202.49935 Signif. F- 0.0000 Variables in the Equation Variable Coefficients Standard Error t Stat P-Value Pounds 7.940 0.055794 14.230 0.0000 Intercept 204.070 0.261513 20.780 0.4361