Sophia operates a full service day spa in a small college town. Recently, Sophia rented space next to her spa and opened a spray tanning salon. She anticipated that the costs for the spray tanning service would primarily be fixed, but found that tanning salon costs increased with the number of appointments. Costs for this service over the past 8 months are as follows:

Required:

1. Using a computer spreadsheet program such as Excel, run a regression on these data. Based on the regression output, write the cost formula for tanning.

2. Using the formula computed in Requirement 1, what is the predicted cost of tanning services for September for 1,550 appointments?

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Month January February March April May June July August Tanning Appointments 1,500 1,600 1,700 1,400 1.300 1,625 1,350 1,200 Total Cost $36,900 38,250 39,000 33.750 36,000 40,000 35.100 33,000