346 High-Low, Regression Analysis On November 15, 2009, Sandra Cook, a newly hired cost analyst at Peterson Company, was asked te predict overhiead costs for the company's operations in 2010, when 530 units are expected to be produced She collected the following quarterly data: Quarter 1/06 Overhead Costs $ 715 Production in Units 76 640 1,124 133 122 125 995 1,105 1,113 1,036 982 1,060 990 951 829 1,044 985 2/07 3/07 4/07 130 121 126 112 81 81 119 87 2/08 1/09 2/09 sing the high-low method to estimate costs, prepare a prediction of overhead costs for 2010 2. Sandy ran a regression analysis using the data she collected. The result was Y $347 $5.76 X Using this cost function, predict overhead costs for 2010. 3 Which prediction do you prefer? Why