QUESTION 1 Amanufacturer produces a product not to stock but made to ordet. The orders placed may be for different quant

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Question 1 Amanufacturer Produces A Product Not To Stock But Made To Ordet The Orders Placed May Be For Different Quant 1 (79.98 KiB) Viewed 96 times

QUESTION 1 Amanufacturer produces a product not to stock but made to ordet. The orders placed may be for different quantities of product. The cost incurred in producing the product depends on different types of costs, eg flat-rate overheads or direct costs in proportion to order size, and so the cost to produce an order may depend on the size of order placed in order to price the orders correctly, allowing for a Setmargin of proft, the manufacturer wishes to predict the cost incurred for an order for its size An assessment of cost is Carted out for a random sample of 20 recent manufactured orders of varying size The cost measured per unit and the number of units produced for each order is recorded model simple regression to the sample 400 Cewer 200 100 100 Units Proud Cosa Unstacou Standard Core Model Sinds Constant 8600 14100170 4344 150 0911 a. Dependent Variable Cow PerUnit Fal in the blanks in the following Identity the response and explanatory variables in this application The response variable. Y. (Costerunt Introduced The predictor explanatory variable, X.is (Core/UnitProduced) The fined regression line Yu input vales as provided in the output) Interpret the meaning of the slope estimate: For each additional unit in the size of an order the cost per unit increased reces) by Interpret the meaning of the intercept estimate When the size of the order produced is 10 dec placed the contents (3 dec place on average de placed on verge