Liao, Inc., a manufacturer of fine china and stoneware, is troubled by fluctuations in productivity and wants to compute how much manufacturing support costs are related to the various sizes of batches of output. The following data show the results of a random sample of ten batches of one pattern of stoneware:

1. Plot support costs versus batch size.
2. Using regression analysis, measure the cost function of support costs and batch size.

3. Predict the support costs for a batch size of 30.
4. Using the high-low method, repeat steps 2 and 3 above. Should the manager use the high-low method or the regression method? Explain.

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SAMPLE BATCH SIZE, X SUPPORT COSTS, Y -234567 15 $180 12 140 20 230 17 190 12 160 25 300 22 270 8 9 110 9 18 240 10 30 320