Louis Katz, a Cost Accountant at Papalote Plastics, Inc $$\begin{array} { | c | } \hline S _ { 8 } = 0.898 \\\hline x ^ { 2 } = 0.526341 \\\hline\end{array}$$

Multiple Choice

Louis Katz, a cost accountant at Papalote Plastics, Inc.(PPI) , is analyzing the manufacturing costs of a molded plastic telephone handset produced by PPI.Louis's independent variable is production lot size (in 1,000's of units) , and his dependent variable is the total cost of the lot (in $100's) .Regression analysis of the data yielded the following tables. $\begin{array}{|c|c|c|c|c|}\hline \text { Soures } & \text { df } & \text { SS } & \text { MS } & F \\\hline \text { Regressjumm } & 1 & 9.858769 & 9.858768 & 12.22345 \\\hline \text { Residual } & 11 & 8.872 & 0.806545 & \\\hline \text { Tlotal } & 12 & 78.7077 & & \\\hline\end{array}$
$$\begin{array} { | c | } \hline S _ { 8 } = 0.898 \\\hline x ^ { 2 } = 0.526341 \\\hline\end{array}$$ For a lot size of 10,000 handsets, Louis' model predicts total cost will be _____.

A) $4,031.80
B) $757.60
C) $3,960.20
D) $354.01
E) $1873.077