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You collect the following production data for your firm: 1) Which do you conside

ID: 1114005 • Letter: Y

Question

You collect the following production data for your firm:


1) Which do you consider to be the best trendline for this data?

a. A graph showing a trendline connecting the L,QL,Q dots from the previous question; LL is measured on the horizontal axis and QQ on the vertical axis. The estimated trendline is y=4.7494x3+60.082x2+25.282xy=4.7494x3+60.082x2+25.282x.

b. A graph showing a trendline connecting the L,QL,Q dots from the previous question; LL is measured on the horizontal axis and QQ on the vertical axis. The estimated trendline is y=24.211x2+436.3x483.48y=24.211x2+436.3x483.48.

c. A graph showing a trendline connecting the L,QL,Q dots from the previous question; LL is measured on the horizontal axis and QQ on the vertical axis. The estimated trendline is y=4.8052x3+61.166x2+19.165x+9.3206y=4.8052x3+61.166x2+19.165x+9.3206.

d. A graph showing a trendline connecting the L,QL,Q dots from the previous question; LL is measured on the horizontal axis and QQ on the vertical axis. The estimated trendline is y=142.73x+149.04y=142.73x+149.04.

2) Use the regression results below to answer the following two questions:

R Square: 0.9994 Adjusted R Square: 0.9991 Blank Coefficients Standard Error tt Stat PP-value Intercept 0 N/A N/A N/A LL 25.282 15.250 1.658 0.141 L2L2 60.082 4.260 14.103 0.000 L3L3 -4.749 0.278 -17.096 0.000

Using these results, calculate the QQ, APAP, and MPMP for L=8L=8 workers.

a. Q=1,984Q=1,984; AP=205.4AP=205.4; MP=62.1MP=62.1.

b. Q=1783Q=1783; AP=197.3AP=197.3; MP=79.3MP=79.3.

c. Q=1,616Q=1,616; AP=202.0AP=202.0; MP=74.7MP=74.7.

d. Q=1,557Q=1,557; AP=213.9AP=213.9; MP=80.8MP=80.8.

3) At 8 workers, is SMCSMC rising or falling, and how do you know?

a. At 8 workers, SMCSMC is rising since MPMP is rising.

b. At 8 workers, SMCSMC is falling since MPMP is rising.

c. At 8 workers, SMCSMC is falling since MPMP is falling.

d. At 8 workers, SMCSMC is rising since MPMP is falling.

Q L 264 2 1,319 6 515 3 74 1 1,642 9 1,049 5 1,445 7 714 4 1,208 11 1,539 10

Explanation / Answer

1) Which do you consider to be the best trendline for this data?

Solution :a. A graph showing a trendline connecting the L,QL,Q dots from the previous question; LL is measured on the horizontal axis and QQ on the vertical axis. The estimated trendline is y=4.7494x3+60.082x2+25.282xy=4.7494x3+60.082x2+25.282x.

2)Use the regression results below to answer the following two questions:

R Square: 0.9994 Adjusted R Square: 0.9991 Blank Coefficients Standard Error tt Stat PP-value Intercept 0 N/A N/A N/A LL 25.282 15.250 1.658 0.141 L2L2 60.082 4.260 14.103 0.000 L3L3 -4.749 0.278 -17.096 0.000

Using these results, calculate the QQ, APAP, and MPMP for L=8L=8 workers.

Solution: c. Q=1,616Q=1,616; AP=202.0AP=202.0; MP=74.7MP=74.7.

3)At 8 workers, is SMCSMC rising or falling, and how do you know?

Solution:b. At 8 workers, SMCSMC is falling since MPMP is rising.

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