Method of Least Squares. Tiptop Company management is interested in predicting travel and entertainment expense based on the number of expected sales calls on customers. Over the past 50 weeks, the company’s Sales Department reported that its sales force made 6,250 calls on customers, an average of 125 calls per week. Travel and entertainment expenses over the same period totaled $500,000, an average of $10,000 per week. The travel and entertainment expense deviations from its average multiplied by the sales call deviations from its average and summed [2(x. — x)(y. — jp)l is 87,000, and the sales call deviations from its average squared and summed [2(x. — 3c)2] is 1,450.

Required: Using the method of least squares, estimate the total cost of travel and entertainment for a week in which the company’s sales personnel make 200 sales calls.