Refer to the data for Pleasant View Hospital in Problem 5—14.

Required:

1. Using the least-squares regression method, estimate a cost formula for utilities. (Round the variable cost to the nearest cent.)

2. Refer to the graph prepared in part (2) of Problem 5—14. Explain why in this case the high-low method would be the least accurate of the three methods in deriving a cost formula.

Transcribed Image Text:

A Microsoft Excel Eile Edit View Insert Format Iools Data Window Help I 100% ABC F15 A B D Number Utilities Month of Scans Cost 2 January 3 February 4 March 5 April 6 May 7 June 8 July 9 August 10 September 11 October $2,200 $2,600 $2,900 $3,300 $3,000 $3,600 $4,000 $3,600 $3,100 $2,500 60 70 90 120 100 130 150 140 110 80 12 • Sheeti Sheet2 / Sheet3 / M Sheet1 / 14