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# Production costs for textbooks, a linear regression equation

See attached file for clarity.

Data Item Quantity (# of Books Produced) Total Cost of Production
1 2 \$30
2 5 \$40
3 8 \$73
4 10 \$100
5 11 \$130
6 12 \$90
7 14 \$150
8 15 \$160
9 16 \$160
10 17 \$180
11 18 \$240
12 19 \$280
13 20 \$180
14 21 \$181
15 22 \$185
16 23 \$190
17 24 \$200
18 25 \$200
19 26 \$275
20 28 \$215
21 30 \$220
22 31 \$221
23 32 \$225
24 33 \$200
25 34 \$205
26 35 \$206
27 36 \$210
28 37 \$200
29 38 \$388
30 40 \$275
31 41 \$400
32 42 \$428
33 43 \$413
34 44 \$450
35 45 \$460
36 46 \$450
37 47 \$471
38 48 \$500
39 49 \$476
40 50 \$450
Use these sums to verify your data entry into Excel 1,137 \$10,104

If there any necessary assumptions please state and include.

1. Please describe, with words and numerical coefficients, your model for the total cost function (again assuming a linear model).

2. How much variance in total cost is explained by estimating it with number of units manufactured using this linear model?

3. What is your best point-estimate (single number) for fixed cost? What about variable cost of producing 20 textbooks (again, single number)?