You've recently been accepted into a one year Masters program at UIUC. Since you had outstanding credentials, the department has offered you a graduate assistantship which includes a one-time tuition waiver of $25,000 at the beginning of the academic year plus an end of the month stipend for 12 months. Anheuser Busch, which recently started a center at the Research Park has also offered you a contract for 1 year as a part-time intern paying $3,500 per month. What monthly stipend would make you indifferent to these two offers, if the rate of interest is 6% compounded monthly.

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)? $