Construct a scatter chart and use the Excel Trendline feature to identify the best type of trendline that maximizes R2.

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Cost functions are often nonlinear with volume because production facilities are often able to produce larger quantities at lower rates than smaller quantities. 3 Using the following data, apply simple linear regression, and examine the residual plot. What do you conclude? Construct a scatter chart and use the Excel Trendline feature to identify the best type of trendline that maximizes R2.

 

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