(04.04 hc) text box that reads, economists warn of an economic downturn. investments and lending have taken a dive while prices have stagnated. unemployment is down as businesses move to reduce costs. the fed considers lowering discount rates and reserve requirements to promote growth. this text appears on the economics page of the local newspaper. one of the sentences is incorrect. which corrected sentence would make the passage accurate? economists warn of an economic upward swing. investments and lending have taken a dive while prices have lowered. unemployment is up as businesses move to reduce costs. the fed considers raising discount rates and reserve requirements to promote growth.

An important application of regression analysis in accounting is in the estimation of cost. by collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. consider the following sample of production volumes and total cost data for a manufacturing operation. production volume (units) total cost ($) 400 4000 450 5000 550 5400 600 5900 700 6400 750 7000 compute b 1 and b 0 (to 2 decimals if necessary). b 1 b 0 complete the estimated regression equation (to 2 decimals if necessary). = + x what is the variable cost per unit produced (to 1 decimal)? $ compute the coefficient of determination (to 4 decimals). note: report r 2 between 0 and 1. r 2 = what percentage of the variation in total cost can be explained by the production volume (to 2 decimals)? % the company's production schedule shows 500 units must be produced next month. what is the estimated total cost for this operation (to 2 decimals)? $