An accountant wishes to predict direct labor cost on the basis of the batch size of a product produced in a job shop. Da
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An accountant wishes to predict direct labor cost on the basis of the batch size of a product produced in a job shop. Da
1024 100 435 41 772 75 A. Find the least squares point estimates bo and b1 on the computer output and report their values. Interpret bo and b1. Does the interpretation of bo make practical sense? B. Use the least squares line to obtain (1) a point estimate of the mean direct labor cost for all batches of size 60 and (2) a point prediction of the direct labor cost for an individual batch of size 60. C. Find the explained variation, the simple coefficient of determination, and the simple coefficient of correlation. Interpret the r2. D. Calculate the mean square error and standard error of this problem.
E. Using the critical value and p-value approaches, test Ho: B1 = 0 versus Ha: B1 O by setting a equal to 0.1, 0.05, 0.01, and 0.001. How much evidence is there that the slope (regression relationship) is significant? F. Using the critical value and p-value approaches, test Ho: Bo = 0 versus Ha: Bo # O by setting a equal to 0.1, 0.05, 0.01, and 0.001. What do you conclude about the significance of the y-intercept?