Refer to the data in Exercise 3€“8 for Brentline Hospital.
In exercise

Required:
1. Using Microsoft Excel, prepare a scattergram using the data from Exercise 3€“8. Plot cost on the vertical axis and activity on the horizontal axis. Use the €œadd trendline€ feature of Microsoft Excel to fit a line through the points on your scattergram.
2. Scrutinize the points on your graph, and explain why the high€“low method would or would not yield an accurate cost formula in this situation.

Transcribed Image Text:

Blood Tests Performed Blood Test Costs Month $14,000 $4,500 $11,500 $10,000 11000 $ 8500 8400 March 2125 May 2750 2875 September. $13000