Harbor Manufacturing Is Trying to Predict the Cost Associated with Producing

question 206

Multiple Choice

Harbor Manufacturing is trying to predict the cost associated with producing its anchors.At a production level of 4,000 anchors,Harbor Manufacturing's average cost per anchor is $50.00.If $20,000 of the costs are fixed,and the plant manager uses the cost equation to predict total costs,her forecast for 5,000 anchors will be:

• A)$ 50,000.
• B)$245,000.
• C)$250,000.
• D)$200,000.

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Definitions:

Standard Deviation

A metric that quantifies the spread or variability among a group of numbers, signaling the extent to which these numbers deviate from their average.

Parameter Estimate

A value used to infer the characteristics of a population from a sample.

Bootstrap

A resampling technique that involves repeatedly drawing samples from a dataset to estimate a population parameter.

Bias

A systematic error or deviation from true values or processes in data collection, analysis, interpretation, and review that can lead to incorrect conclusions.