Adam Branson, financial analyst at SQR Corporation, is examining the behavior of quarterly utility costs for budgeting purposes. Branson

collects the following data on machine-hours worked and utility costs for the past 8 quarters:

LOADING...

(Click the icon to view the data.)

Read the requirements

LOADING...

.

Quarter	Machine-Hours		Utility Costs
1	115,000		$225,000
2	70,000		160,000
3	105,000		210,000
4	120,000		240,000
5	85,000		180,000
6	110,000		220,000
7	100,000		235,000
8	95,000		205,000

Requirements:

1. Estimate the cost function for the quarterly data using the high-low method.

2. Plot and comment on the estimated cost function.

3.Branson anticipates that SQR will operate machines for 120,000 hours in quarter 9. Calculate the predicted utility costs in quarter 9 using the cost function estimated in requirement 1.