Suppose the company in Example 16.2 now produces three different products, A, B, and C. The company has kept track of the number of units produced of each product and the total production cost for the...

Suppose the company in Example 16.2 now produces three different products, A, B, and C. The company has kept track of the number of units produced of each product and the total production cost for the past 15 months. These data appear in Figure 16.12 and in the file Cost Regression 2.xlsx. What can multiple regression tell us about the relationship between these variables? How can multiple regression be used to predict future production costs?

Objective To use multiple regression to estimate the relationship between units produced of three products and the total production cost, and to use this relationship to predict future total costs.