(Adapted from a problem in the text) Genesee Fishing Tours (GFT) offers small group fishing expeditions off the local coast. The managers of the company are considering expanding the business to another city and want to put together a financial plan. As a part of that effort, the financial staff are analyzing the operating costs of GFT. They believe that a good predictor of operating cost is the number of clients that use the service. As a part of their analysis, they have collected 30 months of data on operating costs and number of clients. A potential issue with the data analysis is that beginning during month 16 , GFT decided to provide clients with a more personalized experience. Shown is a scatter plot of the monthly data collected by GFT. In order to estimate a model to forecast future costs, GFT would use this data to fit which of the following relationships? Choose the best answer. Costs = Variable costs + Fixed costs Costs = Fixed costs per month + Variable cost per client # of clients per month Costs = Fixed costs per year + Variable cost per client # of clients per month Average costs = Total Costs / Total Clients (Adapted from a problem in the text) Genesee Fishing Tours (GFT) offers small group fishing expeditions off the local coast. The managers of the company are considering expanding the business to another city and want to put together a financial plan. As a part of that effort, the financial staff are analyzing the operating costs of GFT. They believe that a good predictor of operating cost is the number of clients that use the service. As a part of their analysis, they have collected 30 months of data on operating costs and number of clients. A potential issue with the data analysis is that beginning during month 16 , GFT decided to provide clients with a more personalized experience. Shown is a scatter plot of the monthly data collected by GFT. Suppose GFT wanted to use the High Low method to estimate monthly fixed costs and variable costs per month, which of the following statements is true? They would choose point 1 as the high observation and point 3 as the low observation. They would choose point 1 as the high observation and point 4 as the low observation. They would choose point 2 as the high observation and point 3 as the low observation. They would choose point 2 as the high observation and point 4 as the low observation. GFT selected these observations as the high and low observations: { Clients =371, Costs = $36,030} and { Clients =831, Costs =$42,010}. Determine the variable cost per client. Round to the nearest $0.01