A Study Examined the Number of Trees in a Variety

question 4

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

$\begin{array}{|l|r|r|}\hline \text { Parameter} & \text {Estimate} & \text { Std. Err. } \\\hline \text { Constant} & 390.59 & 16328.8 \\\hline \text {Trees }& 525.84 & 71.22 \\\hline\end{array}$





-Write the regression equation. Define all variables used in your equation.

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Definitions:

Direct Materials

The raw materials that can be directly attributed to the production of specific goods or services.

Incremental Revenues

The additional income generated from a new product or service or as a result of making changes to an existing operation.

Fixed Overhead

Regular, predictable costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Variable Overhead

Costs that vary directly with the level of production or business activity.