A company would like to estimate its total cost equation. It hascollected 48 months of monthly production output and correspondingtotal production costs.  The collected data is in thefile Production Cost Data Only.xlsx.Recall that

TOTAL COST = Fixed Costs + Variable Cost per Unit *Output.

Use the data to estimate a function that describes total costfor this company. (Round answers to 2 decimal places)

Develop a scatterplot of the two variables: monthly output andmonthly total costs. Describe the relationship.

Estimate a total cost curve for this company.  Statethe estimated total cost function.

Based on your estimated total cost curve what is the estimatedFixed Cost for the Company?

Based on your estimated total cost curve what is the estimatedaverage unit variable cost for the Company?

Develop a 95% confidence interval for the true average variablecost per unit.

What percent of the variation in monthly production costs is“explained” by the monthly production output?

Suppose the plant manager is interested in meancosts for several monthswhere output averages 30,000units (i.e., Xp = 30). What is the predicted monthly total costswhen output averages 30?  Construct a 95% confidenceinterval for the mean production costs for months that average30,000 units of output.

Monthly Output (in thousands of units)	Monthly Total Production Cost (in thousand $)
47	926
45	888
42	841
43	888
42	863
42	898
41	885
48	911
41	812
40	837
39	845
39	856
40	858
38	852
39	877
39	926
37	915
37	841
37	812
37	833
36	822
38	809
37	769
38	783
41	745
38	716
39	656
39	620
37	616
35	771
34	754
34	703
32	667
31	643
28	540
25	502
20	436
17	380
14	314
13	294
10	290
10	190
9	203
8	176
8	192
6	149
5	114
4	126