Cox Company’s costs for equipment maintenance during the last eight weeks are given
as follows:

Required:
1. Using the scattergraph and visual fit approach, estimate a cost function from the above data.
2. Using the high-low approach, estimate a cost function from the above data.
3. For each of the methods in Parts (1) and (2), predict the cost of equipment
maintenance for a week during the following month when 58 hours are expected to be worked.

Transcribed Image Text:

Actual Week Hours Costs 1 J 45 $400 2345678 60 540 3 64 560 65 600 55 520 6. 5455 50 470 40 450 35 360