The Estimate Regression Equation for the Average Cost of Widgets

Multiple Choice

The estimate regression equation for the average cost of widgets is:
^Widgets = 7.33 - 0.2340 Output + 0.1892 Output². Both predictor variables are statistically significant at 5% level, confirming the quadratic effect. What is the predictive average from an output level of 2 million units to 3 million units?

A) The increase in output units results in a $0.02 decrease in predictive average cost.
B) The increase in output units results in a $0.24 increase in predictive average cost.
C) The increase in output units results in a $0.71 decrease in predictive average cost.
D) The increase in output units results in a $0.71 increase in predictive average cost.