6.

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[The following information applies to the questions displayed below.]

Professor John Morton has just been appointed chairperson of the Finance Department at Westland University. In reviewing the department's cost records, Professor Morton has found the following total cost associated with Finance 101 over the last five terms:

Term	Number of Sections Offered	Total Cost
Fall, last year	4	$ 10,000
Winter, last year	7	$ 13,000
Summer, last year	3	$ 8,000
Fall, this year	2	$ 7,500
Winter, this year	5	$ 12,000

Professor Morton knows that there are some variable costs, such as amounts paid to graduate assistants, associated with the course. He would like to have the variable and fixed costs separated for planning purposes.

2-a. Using the least-squares regression method, estimate the variable cost per section and the total fixed cost per term for Finance 101.

2-b. Express these estimates in the form Y = a + bX.

6a.

6a. Required information [The following information applies to the questions displayed below.] Professor John Morton has just been appointed chairperson of the Finance Department at Westland University, In reviewing the department's cost records, Professor Morton has found the following total cost associated with Finance 101 over the last five terms: Number of Sections Term Offered Total Cost Fall, last year $ 10,600 Winter, last year $ 13,090 Summer, last year $ 8, 600 Fall, this year $ 7,508 Winter, this year $ 12,600 Professor Morton knows that there are some variable costs, such as amounts paid to graduate assistants, associated with the course. He would like to have the variable and fixed costs separated for planning purposes. 2-a. Using the least-squares regression method, estimate the variable cost per section and the total fixed cost per term for Finance 101. 2-b. Express these estimates in the form Y= a + bX. Complete this question by entering your answers in the tabs below. Required 2A Required 28 Using the least-squares regression method, estimate the variable cost per section and the total fixed cost per term for Finance 101. (Round your intermediate calculations and final answers to the nearest whole dollar amount.) Fixed cost per term Variable cost per section 6b. 2-a. Using the least-squares regression method, estimate the variable cost per section and the total fixed cost per term for Finance 101. 2-b. Express these estimates in the form Y = a + bX Complete this question by entering your answers In the tabs below. Required 2A Required 20 Express these estimates in the form Y = a + bX. (Round your intermediate calculations and final answers to the nearest whole dollar amount.} Y= Required 2A Required 28 >7a. Required information [The following information applies to the questions displayed below] Professor John Morton has just been appointed chairperson of the Finance Department at Westland University. In reviewing the department's cost records, Professor Morton has found the following total cost associated with Finance 101 over the last five terms: Number of Sections Term offered Total Cost Fall, last year $ 10,800 Winter, last year $ 13,000 Summer, last year $ 8,080 Fall, this year $ 7,500 Winter, this year $ 12,630 Professor Morton knows that there are some variable costs, such as amounts paid to graduate assistants, associated with the course. He would like to have the variable and fixed costs separated for planning purposes 3-a. Assume that because of the small number of sections offered during the Winter Term this year, Professor Morton will have to offer eight sections of Finance 101 during the Fall Term. Compute the expected total cost for Finance 101. 3-b. Can you see any problem with using the cost formula from part (2) to derive this total cost figure? Complete this question by entering your answers in the tabs below. Required 3A Required 38 Assume that because of the small number of sections offered during the Winter Term this year, Professor Morton will have to offer eight sections of Finance 101 during the Fall Term. Compute the expected total cost for Finance 101. (Round Intermediate calculations and final answers to the nearest whole dollar amount.) Fixed cost Variable cost Total expected cost Required 34 Required 38 7b. Complete this question by entering your answers in the tabs below. Required 3A Required 38 Can you see any problem with using the cost formula from part (2) to derive this total cost figure? Coefficient estimates may have high variance OPrediction is not guaranteed to become actual. O)Prediction is out of the relevant range Prediction is based on old data