PRC-2 · Chapter 10 · Question 38 of 60
A regression line predicting total cost (Y) based on units produced (X) is given as Y = 12,000 + 40X. What is the predicted total cost if 500 units are produced?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 32,000
Explanation
Substitute X = 500 into the regression equation. Y = 12,000 + 40(500) = 12,000 + 20,000 = Rs. 32,000.
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