Instruction:Submittwofilesasusual,aWordfilethathasalltheanswersforthequestionsandanExcel
filethathasonlythedataandregressionoutputs.FortheExcelfile,makesureyougivethenamefor
eachspreadsheetsuchasdata,straightline,quadraticandcubic(4spreadsheetswiththenames).Do
notforgettoputthegroupnumberandthenamesoftheparticipantsontheprojectintheWord
document.
ThegroupprojectbelowisQuestion9onpage287,chapter7.Ideletedcertainquestions.Makesure
youreadpp.258260withthespecialattentiontoFigure7.4(thethreedifferentspecificationsofthe
totalcostfunction)andpp.295305fromyourtextbook.AndDONOTforgettousemylecturenote
calledEstimatingthecostfunction.
Youhavebeenpresentedwiththefollowingcostdataandaskedtofita
statisticalcostfunction:
Quantity TotalCost
10
104.0
20
107.0
30
109.0
40
111.5
50
114.5
60
118.0
70
123.0
80
128.5
90
137.0
100
150.0

1. Fitthreepossiblestatisticalcostfunctionstothedata.Usestraightline,quadratic,andcubic
formulas.
2. Discussthestatisticalresultsyouobtainedinquestion1.IncludeinyourdiscussionR2,the
coefficients,andthestatisticalsignificanceofthecoefficients.Forthestatisticalsignificance
test,usetheptestratherthanthettest.Ifyoudecidetousethettest,youfirsthavetofind
thedegreesoffreedomandthenfindtheappropriatecriticaltvalueinTableA.4onpage583.
3. Ifthedatarepresent10monthsofproductionforoneplantofaspecificcompany,wouldyou
considerthistobeashortrunanalysis?
4. Howwouldyouranswertoquestion3changeifyouweretoldthatthedatarepresent10
differentplantsduringaparticularmonthoftheyear?