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Calculate the empirical cost function with regression


Precision Engineering department has collected data on its average costs of production for the past 12 months. The monthly fixed cost is $4000 per month. The AVC and associated output data are presented below:

Month Q     AVC $
Jan 70 375  
Feb     58     540       
Mar      160     450       
Apr      120     255       
May      130     138       
Jun      120     150       
Jul      10     450       
Aug      35     350       
Sep      80     60       
Oct      110     70       
Nov      100     90       
Dec      190     153    

  
Run the appropriate regression to calculate the estimated parameters for the empirical cost function AVC = a + bQ + cQ2. The answer should include regression output from the statistical software.

Additional Information

This question based on the Statistics and it is about calculating the empirical cost function AVC = a + bQ + cQ2 by running the appropriate regression analysis.

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Basic Statistics: Calculate the empirical cost function with regression
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