Refer to the laboratory overhead cost and activity data for Rosedale Health Center in E6-50B. Use the high-low method to determine the laboratory's cost equation for total laboratory overhead. Use your results to predict total laboratory overhead if 2,700 lab tests are performed next month.

Requirements
1. Prepare a scatter plot of the lab's volume (number of lab tests performed) and total laboratory overhead costs.
2. Do the data appear to contain any outliers? Explain.
3. How strong of a relationship is there between the number of lab tests performed and laboratory overhead costs?

Transcribed Image Text:

Total Laboratory Overhead Costs Number of Lab Tests Month Performed 3,250 3,000 3,750 3,500 4,200 2,200 January. February . March April. $27,600 $24,800 $25,900 $23,500 $27,000 May June $18,800 $26,500 3,400 July...