Exam Question – Statistics

Exam Question – Statistics

December 15, 2020 |

Exam Question – Statistics The management of Wheeler Company has decided to develop cost formulas for its major overhead activities. Wheeler uses a highly automated manufacturing process, and power costs are a significant manufacturing cost. They have debated whether the power cost should be treated as fixed, variable, or both. Using the following data, you are charged to settle this issue and determine the best cost formula for Wheeler. Quarter Machine Hrs. Power Cost 1 20000 26000 2 25000 38000 3 30000 42500 4 22000 37000 5 21000 34000 6 18000 29000 7 24000 36000 8 28000 40000 Find the estimated fixed cost associated with the machine hours. Find the estimated variable cost associated with the machine hours. Discuss your confidence in the use of these estimates. Would you recommend using this cost function? Explain. 20171016021730question_1 (1)            

Exam Question – Statistics

December 15, 2020 |

Exam Question – Statistics 4. What is the best answer given this information? (Briefly Explain Why) Model 1 Model 2 Model 3 X-variables 6 4 3 R2 .9344 .9277 .8761 Adjusted R2 .9058 .9133 .8497 MSE 5867.53 5746.09 5844.78 Model 1 performs the best in all areas. Model 3 performs better than Model 2. We would most likely prefer Model 1. We would most likely prefer Model 2. We would most likely prefer Model 3. 5. The table below features three forecasting models used on the same set of data. Model 1 Model 2 Model 3 Type Exponential Smoothing Regression Seasonal & Trend MSE 8755.3 4876.2 5945.8 Based solely on the information in this output, which of the following is the best answer? (Briefly Explain Why) The data set contains no trend or seasonality. The data set contains trend but no seasonality. The data set contains seasonality but no trend….    read more 

Exam Question – Statistics

December 15, 2020 |

Exam Question – Statistics The management of Wheeler Company has decided to develop cost formulas for its major overhead activities. Wheeler uses a highly automated manufacturing process, and power costs are a significant manufacturing cost. They have debated whether the power cost should be treated as fixed, variable, or both. Using the following data, you are charged to settle this issue and determine the best cost formula for Wheeler. Quarter Machine Hrs. Power Cost 1 20000 26000 2 25000 38000 3 30000 42500 4 22000 37000 5 21000 34000 6 18000 29000 7 24000 36000 8 28000 40000 Find the estimated fixed cost associated with the machine hours. Find the estimated variable cost associated with the machine hours. Discuss your confidence in the use of these estimates. Would you recommend using this cost function? Explain. 20171016021730question_1 (1)    

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