Caesar Entertainment Corporation's Form 10-K contains a variety of data in addition to financial statements. Below is a list that contains Caesars' food and beverage costs (adapted) taken from its Statements of Operations for the past 22 years. In addition, the number of hotel rooms and suites owned by Caesars at the end of each of those 22 years has been gathered from other information provided in the Form 10-Ks.

Requirements
1. Using the high-low method, find the following cost estimates:
a. Variable food and beverage cost per hotel room/suite
b. Fixed food and beverage cost per hotel room/suite
2. Perform a regression analysis using Excel. Use # of hotel rooms & suites as the X and the Food and beverage costs as the Y in your regression analysis.
a. What is the estimated variable food and beverage cost per hotel room/suite?
b. What is the estimated fixed food and beverage cost per hotel room/suite?
c. In your opinion, is the number of hotel rooms and suites a good predictor of Caesars' food and beverage costs? Why or why not?
Compare the estimates of variable and fixed costs calculated using the high-low method to the estimates calculated using the regression method. Which method would most likely provide a better cost estimate? Explain.

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# of hotel rooms & suites Year ended Food and beverage costs $ 694,000,000 $ 639,000,000 $ 634,000,000 $ 665,700,000 $ 621,300,000 $ 596,000,000 $ 639,500,000 $ 716,500,000 $ 697,600,000 $ 482,300,000 $ 278,100,000 $ 255,200,000 $ 240,600,000 $ 232,400,000 $ 228,000,000 $ 218,600,000 $ 116,600,000 $ 103,600,000 $ 95,900,000 $ 91,500,000 $ 82,800,000 $ 76,500,000 12/31/2014 39,218 12/31/2013 42,200 12/31/2012 42,710 12/31/2011 42,890 12/31/2010 42,010 12/31/2009 41,830 12/31/2008 39,170 12/31/2007 38,130 12/31/2006 38,060 12/31/2005 43,060 12/31/2004 17,220 12/31/2003 14,780 12/31/2002 14,551 12/31/2001 13,598 12/31/2000 11,562 12/31/1999 11,760 12/31/1998 11,685 12/31/1997 8,197 12/31/1996 6,478 12/31/1995 5,736 12/31/1994 5,367 12/31/1993 5,348