The following information is for the production quantities and total production costs for the past...
70.2K
Verified Solution
Link Copied!
Question
Accounting
The following information is for the production quantities and total production costs for the past three years analysed in quarters:
Year Quarter Production qty Total cost (K'M)
1 1 60 22
2 100 29
311533
410 8
2 1 40 18
2 200 37
3 220 38
4 120 31
3 1 35 12
2 160 80
3 80 26
4 240 ..54
Required
a) Calculate the expected cost (in Kwacha) for year 4 in third quarter where production is estimated to 270 units using the High- low method.
b) Calculate the Pearson correlation coefficient and the coefficient of determination and explain its implication in relation to quantity and cost.
c) Using the least squares method, establish the straight line explaining the relationship between production quantity and total cost, and estimate the expected total cost at production of 115 units.
d) Using a three-quarter moving average, perform an additive model time series analysis on the production quantities and estimate the production quantities for year 4 quarter 3 assuming that the trend grows exponentially from quarter 1 of year 2, onwards
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
