Cascade Manufacturing produces a compressor motor for air conditioner units. The

Question

Cascade Manufacturing produces a compressor motor for air conditioner units. The company manufactures the motors to order by modifying the base model to meet the specifications requested by the customer. The motors are produced in a batch environment with the batch size equal to the number ordered. Marlene Jacobs is the plant manager for Cascade Manufacturing and she would like to know if there is any relationship between order size and cost of production. She had her quality control group randomly collect a sample of 50 customer orders and record the size of the order and the total production cost. The data collected are in the file "Cascade Manufacturing" and that file is attached. If there is a significant relationship between the size of the order and the production cost, Ms. Jacobs would like to be able to estimate production costs based on order size.

1. Use the sample data to develop a regression model with the order size as the independent variable and the cost as the dependent variable.

2. Test the significance of the overall regression model using a significance level of 0.02.

3. Cascade Manufacturing has just received an order from their largest customer for 60 motors.

a. Use the regression model from part 1 to provide a 90% confidence interval for the average cost of an order of 30 motors.

b. Again, using the regression model from part 1, produce a 90% prediction interval for the cost of this particular order.

4. This is the most important part: Write a memorandum to Ms. Jacobs.

a. Explain the coefficients of the regression model.

b. Explain parts 3a and 3b clearly defining the differences in the predictions

I need the work done in excel and need to know what analysis tools you used. It would be even better if you could attach the excel file. If it is complete and I can understand how you did the calculations I will bump up the awarded points, but I will need all information.

Order Size Total Cost 28 $     7,531 27 $     6,329 34 $     8,413 30 $     7,793 19 $     5,360 21 $     4,838 11 $     2,551 17 $     3,899 33 $     8,326 23 $     5,465 7 $     2,283 23 $     5,413 18 $     4,238 26 $     6,911 20 $     6,315 29 $     8,243 10 $     2,866 22 $     6,775 14 $     4,289 6 $     1,475 15 $     3,590 35 $     9,439 23 $     6,760 18 $     5,170 31 $     7,780 21 $     4,896 35 $     8,816 29 $     8,116 21 $     6,212 24 $     5,551 27 $     7,080 36 $     9,826 24 $     6,129 20 $     5,094 13 $     3,568 14 $     3,738 19 $     5,332 14 $     3,286 28 $     6,664 24 $     5,990 27 $     7,093 16 $     3,975 36 $     9,046 20 $     4,906 19 $     5,324 7 $     2,734 32 $     8,138 21 $     5,376 29 $     7,763 23 $     5,964

Explanation / Answer

Cascade Manufacturing produces a compressor motor for air conditioner units. The company manufactures the motors to order by modifying the base model to meet the specifications requested by the customer. The motors are produced in a batch environment with the batch size equal to the number ordered. Marlene Jacobs is the plant manager for Cascade Manufacturing and she would like to know if there is any relationship between order size and cost of production. She had her quality control group randomly collect a sample of 50 customer orders and record the size of the order and the total production cost. The data collected are in the file "Cascade Manufacturing" and that file is attached. If there is a significant relationship between the size of the order and the production cost, Ms. Jacobs would like to be able to estimate production costs based on order size.

Excel is used.

Megastat addin is used for analysis.

Excel output

Regression Analysis

r

Regression Analysis

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