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    Simple Regression

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    Simple Regression. The European Engine Company (EEC) is a multi-national manufacturer of small gasoline and diesel motors. EEC has estimated the following cost experience for a new 3.5 hp engine over a sample of 122 observations:

    COST = $8,500 + $32 OUTPUT

    Predictor Coef Stdev t ratio
    Constant 8,500 5,000 1.7
    OUTPUT 32 8 4.0

    SEE = $2,500 R2 = 75% = 74.8% F statistic = 360

    where COST is the dependent Y variable and OUTPUT is the independent X-variable.

    A. Fully interpret these simple regression results.
    B. Describe this cost category as fixed or variable based upon the simple regression results described previously
    (attached word doc.)

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    https://brainmass.com/economics/regression/simple-regression-european-engine-company-358374

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    Simple Regression. The European Engine Company (EEC) is a multi-national manufacturer of small gasoline and diesel motors. EEC has estimated the following cost experience for a new 3.5 hp engine over a sample of 122 observations:

    COST = $8,500 + $32 OUTPUT

    Predictor Coef Stdev t ratio
    Constant 8,500 5,000 1.7
    OUTPUT 32 8 4.0

    SEE = ...

    Solution Summary

    Simple regression results interpreted and cost category determined.

    $2.19