Ellen McGuire operates a local courier service with 10 vehicles. These vehicles pick up and deliver packages within the urban area. Ellen is very concerned about her delivery costs and wants to get a better idea of how to predict these costs in the future. She has gathered monthly data for the past year and has decided to try to categorize her costs by fixed and variable.

Required:1. Prepare a scattergraph to estimate the best fit for a cost line. Plot total cost on the vertical axis and kilometres driven on the horizontal axis.2. Prepare a least squares analysis of the data.3. What is the cost formula derived from the least squares analysis?4. Does this result appear to be consistent with your scattergraph analysis?5. Which method do you prefer? Why?