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b) Wilson an automotive technician has been operating a garage in Mombasa for the past two years. A year ago he converted part of his

b) Wilson an automotive technician has been operating a garage in Mombasa for the past two years. A year ago he converted part of his garage to a welding shop making and selling metal doors and windows. He had anticipated that he cost of welding shop would primarily be final but has realized that the welding cost increased with the increase in number of welding job assignment. The costs of welding job assignments are as follows.

Perched

No of welding job assignments

Total cost sh 000

Sept 2008

280

700

Oct 2008

800

860

Nov 2008

1,240

110

Dec 2008

1,000

960

Jan 2009

600

720

Feb 2009

920

910

Mar 2009

860

880

Apr 2009

1,200

260

REQUIRED:

Formulate an equation to estimate the total cost of the welding shop and compute the cost of undertakings 1256 assignment using

  1. High-low method
  2. Simple linear regression method. (6 Marks)

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