A Study Examined the Number of Trees in a Variety

question 18

Essay

A study examined the number of trees in a variety of orange groves and the corresponding number of oranges that each grove produces in a given harvest year. Linear regression was calculated and the results are below.
linear regression results:
Dependent Variable: oranges
Independent Variable: trees
Sample size: 9
R-sq = 0.886 s = 31394.7
$\begin{array}{|l|r|r|}\hline \text { Parameter } & \text { Estimate } &{\text { Std. Err. }} \\\hline \text { Constant } & 390.59 & 16328.8 \\\hline \text { Trees } & 525.84 & 71.22 \\\hline\end{array}$

-Interpret the slope in context.

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Definitions:

AVC

Average variable cost, which is the total variable cost divided by the quantity of output produced.

ATC

Stands for Average Total Cost, which is the total cost per unit of output produced.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, remaining constant regardless of the business activity.

AVC

Average Variable Cost is the total variable costs divided by the quantity of output, representing the variable cost per unit of output.