Use straight-line-quadratic and cubic formulas

Assignment Help Business Economics

Reference no: EM13816750

You have been presented with the following cost data and asked to fit a statistical cost function.

Quantity Total Cost

10 104

20 107

30 109

40 111.5

50 114.5

60 118

70 123

80 128.5

90 137

100 150

To help me learn the calculations, PLEASE show all your work.

1. Fit three possible statistical cost functions to the data. Use straight-line, quadratic, and cubic formulas.

2. Discuss the statistical results you obtained in question 1. Include in your discussion R2 , the coefficients, and the statistical significance of the coefficients. For the statistical significance test, use the p-test rather than the t-test. If you decide to use the t-test, you first have to find the degrees of freedom and then find the appropriate critical t-value in Table A.4 on page 575.

3. If the data represent 10 months of production for one plant of a specific company, would you consider this to be a short-run analysis?

4. How would your answer to question 3 change if you were told that the data represent 10 different plants during a particular month of the year?

Reference no: EM13816750

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