The president of a small manufacturing firm is concerned about the continual increase in manufacturing costs over the past sever
al years. The following figures provide a time series of the cost per unit for the firm's leading product over the past eight years. Click on the datafile logo to reference the data. Year Cost/Unit ($) Year Cost/Unit ($) 1 20.00 5 26.60 2 24.50 6 30.00 3 28.20 7 31.00 4 27.50 8 36.00 (a) Choose the correct time series plot. (i) (ii) (iii) (iv) What type of pattern exists in the data? (b) Use simple linear regression analysis to find the parameters for the line that minimizes MSE for this time series. If required, round your answers to two decimal places. y-intercept, b0 = 19.99 Slope, b1 = 1.77 MSE = (c) What is the average cost increase that the firm has been realizing per year? Round your interim computations and final answer to two decimal places. $ 1.77 (d) Compute an estimate of the cost/unit for next year. If required, round your answer to two decimal places. $ 35.92
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