Question

A manufacturer produces custom metal blanks that are used by its customers for computer- aided machining. The customer sends a design via computer, and the manufacturer comes up with an estimated cost per unit, which is then used to determine a price for the customer. The data for the analysis were sampled from the accounting records of 29 orders filled during the previous three months. Formulate a regression model with Y as the cost per unit and X as the material cost per unit. Material Average Cost Cost ($/unit) ($/unit) 1.61 54.06 2.73 28.98 3.28 40.01 2.24 31.09 1.20 37.01 5.77 53.71 3.06 34.38 2.03 32.89 1.92 48.97 1.52 40.05 4.21 57.65 2.17 34 1.60 36.16 2.22 24.73 1.12 36.27 2.00 26.46 3.16 39.86 3.91 43.19 4.24 55.68 2.14 38 1.82 48.9 2.35 34.84 0.85 33.21 1.48 40.37 Copy-and-paste the above data into software of your choice. Run a regression analysis using y = average cost per unit and x = material cost per unit. What is the regression equation? Round to the nearest tenth (1 decimal place).

Answer 1

`y = 3.80721x+ 30.30222`

Explanation:

Material cost x Average cost y

1.61 54.06

2.73 28.98

3.28 40.01

2.24 31.09

1.20 37.01

5.77 53.71

3.06 34.38

2.03 32.89

1.92 48.97

1.52 40.05

4.21 57.65

2.17 34

1.60 36.16

2.22 24.73

1.12 36.27

2.00 26.46

3.16 39.86

3.91 43.19

4.24 55.68

2.14 38

1.82 48.9

2.35 34.84

0.85 33.21

1.48 40.37

Now plot the given points in the regression calculator .

So, The required equation :
`y = 3.80721x+ 30.30222`

Where y = average cost per unit and x = material cost per unit.

Hence the regression equation for the given data is
`y = 3.80721x+ 30.30222`