Pearson Products Believes One of Its Costs Is a Mixed

question 83

Essay

Pearson Products believes one of its costs is a mixed cost and has run a regression analysis which shows the following:
SUNLMARY OUTPUT
$\begin{array}{lr}\hline {\text { Regression Statistics }} \\\hline \text { Multiple R } & 0.963711945 \\\text { R Square } & 0.928740713 \\\text { Adjusted R Square } & 0.916864165 \\\text { Standard Error } & 946.0983069 \\\text { Observations } & 8 \\\hline\end{array}$

ANOVA
$\begin{array}{llrrrr}\hline&\text { df } &\text { S S}&\text { M S }&\text { F }& \text { Significance F}\\\text { Regression } & 1 & 69996575.46 & 69996575.46 & 78.19955153 & 0.000116235 \\\text { Residual } & 6 & 5370612.038 & 895102.0063 & & \\\text { Total } & 7 & 75367187.5 & & & \\\hline\end{array}$

$\begin{array}{lrrrr}\hline&&\text { Coefficients } &\text { Standard Eiror } &\text { t Stat } & \text {P -vahue }\\\hline\text { Intercept } & 11568.56000 & 1352.390000 & 8.554149469 & 0.000140059 \\\text { X Variable 1 } & 1.9800000 & 0.223900000 & 8.843051031 & 0.000116235 \\\hline\end{array}$

Required:
A. Write the equation to predict estimated total mixed costs.
B. If 1000 units are produced, what will be total mixed costs?
C. What does the 'R Square' number tell Pearson? Interpret the 'R Square' data for Pearson.

---

Definitions:

Depression

A common mental disorder characterized by persistent sadness, lack of interest or pleasure in activities, and an array of emotional and physical problems.

Anxiety

A feeling of worry, nervousness, or unease, typically about an imminent event or something with an uncertain outcome.

Somatic Antecedent

A bodily or physical precursor that leads to a psychological response.

Panic Attack

A sudden onset of intense fear or discomfort, often accompanied by physical symptoms like rapid heartbeat and sweating.