Adam Miller, financial analyst at LMN Corporation, is examining the behavior of quarterly utility costs for budgeting purposes. Miller collects the following data on machine-hours worked and utility costs for the past 8 quarters: (Click the icon to view the data.) Read the requirements. Requirement 1. Estimate the cost function for the quarterly data using the high-low method. (Complete all answer boxes.) =+ (After you hit continue, the screen may take you below the beginning of the next step. If so, scroll back up to the top of the step.) Requirement 2. Plot and comment on the estimated cost function. for the estimated cost function using the high-low method. The data points for the 8 quarters have already been entered in for you. (Enlarge the graph and use the line button displayed below to draw the graph.) Adam Miller, financial analyst at LMN Corporation, is examining the behavior of quarterly utility costs for budgeting purposes. Miller collects the following data on machine-hours worked and utility costs for the past 8 quarters: (Click the icon to view the data.) Read the requirements. Comment on the estimated cost function by choosing the correct statement to go with each of the evaluation criteria listed below. Economic plausibility: The cost function shows a positive economically plausible relationship between machine-hours and utility costs. There is a clear-cut relationship of higher machine-hours and utility costs. The cost function shows a negative economically plausible relationship between machine-hours and utility costs. There is not a clear-cut relationship of higher machine-hours and utility costs. Goodness of fit: The high-low line appears to "fit" the data well. The vertical differences between the actual and predicted costs appear to be quite small. The high-low line appears to not "fit" the data well. The vertical differences between the actual and predicted costs appear to be quite large. Slope of high-low line: The slope of the line appears to be unreasonably steep indicating that, on average, utility costs in a quarter do not vary with machine-hours used. The slope of the line appears to be reasonably steep indicating that, on average, utility costs in a quarter vary with machine-hours used. Requirement 3. Miller anticipates that LMN will operate machines for 100,000 hours in quarter 9 . Calculate the predicted utility costs in quarter 9 using the cost function estimated in requirement 1. Adam Miller, financial analyst at LMN Corporation, is examining the behavior of quarterly utility costs for budgeting purposes. Miller collects the following data on machine-hours worked and utility costs for the past 8 quarters: (Click the icon to view the data.) Read the requirements. Comment on the estimated cost function by choosing the correct statement to go with each of the evaluation criteria listed below. Economic plausibility: The cost function shows a positive economically plausible relationship between machine-hours and utility costs. There is a clear-cut relationship of higher machine-hours and utility costs. The cost function shows a negative economically plausible relationship between machine-hours and utility costs. There is not a clear-cut relationship of higher machine-hours and utility costs. Goodness of fit: The high-low line appears to "fit" the data well. The vertical differences between the actual and predicted costs appear to be quite small. The high-low line appears to not "fit" the data well. The vertical differences between the actual and predicted costs appear to be quite large. Slope of high-low line: The slope of the line appears to be unreasonably steep indicating that, on average, utility costs in a quarter do not vary with machine-hours used. The slope of the line appears to be reasonably steep indicating that, on average, utility costs in a quarter vary with machine-hours used. Requirement 3. Miller anticipates that LMN will operate machines for 100,000 hours in quarter 9 . Calculate the predicted utility costs in quarter 9 using the cost function estimated in requirement 1. The predicted maintenance costs would be for quarter 9 . Adam Miller, financial analyst at LMN Corporation, is examining the behavior of quarterly utility costs for budgeting purposes. Miller collects the following data on machine-hours worked and utility costs for the past 8 quarters: (Click the icon to view the data.) Read the requirements. Data table Comment on the estimated cost fun listed below. Economic plausibility: The cost function shows a pos 3. There is a clear-cut relationship of higher machine-hours and utility costs. The cost function shows a neg ts. There is not a clear-cut relationship of higher machine-hours and utility Goodness of fit: The high-low line appears to "I appear to be quite small. The high-low line appears to n osts appear to be quite large. Slope of high-low line: The slope of the line appears not vary with machine-hours used. The slope of the line appears with machine-hours used. Requirement 3. Miller anticipates tr Jicted utility costs in quarter 9 using the cost function estimated in requirement