Show transcribed image text Section 12.1 Suppose the expected cost (y) of a production run is related to the size of the run (x) by the equation y-4000 + 10z. Let Y denote an observation on the cost of a run. Suppose size and cost are related according to this simple linear regression model. (a) What is the expected cost when the size of the run is 150 units? b) By how much do you expect the cost to increase, if the size of the run is increased by 10 units!? (c) Suppose that the standard deviation of the random error e is $250. What is the probability that the cost of a production run of 150 units will cost more than $6000? (d) Suppose the cost is observed from a production run of 200 units, and then is observed again from a production run of 250 units. What is the probability that this second observation exceeds the first by more than $1500?
Section 12.1 Suppose the expected cost (y) of a production run is related to the size of the run (x) by the equation y-4000 + 10z. Let Y denote an observation on the cost of a run. Suppose size and cost are related according to this simple linear regression model. (a) What is the expected cost when the size of the run is 150 units? b) By how much do you expect the cost to increase, if the size of the run is increased by 10 units!? (c) Suppose that the standard deviation of the random error e is $250. What is the probability that the cost of a production run of 150 units will cost more than $6000? (d) Suppose the cost is observed from a production run of 200 units, and then is observed again from a production run of 250 units. What is the probability that this second observation exceeds the first by more than $1500?
