Hungry Hannah’s is a small start-up company that delivers food and beverages to customers in business and residential locations via a fleet of autonomous motorized devices, including self-driving cars and drones. Data for the past 8 months were collected as follows:

Coefficients shown by a regression program for Hungry Hannah’s data are: Intercept 36,588 X Variable 3.35

Required:

Use the results of regression to make the following calculations:

1. Calculate the variable rate per delivery and the total fixed delivery cost.
2. Construct the cost formula for total delivery cost.
3. Calculate the budgeted cost for next month, assuming that 9,000 deliveries are budgeted.

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Month May June July August September October November December Delivery Cost $53,450 57,120 56,990 58,020 63,400 62,850 65,450 63,300 Number of Deliveries 5,400 6,090 6,875 5,800 7,340 8,100 8,525 7,990