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Deepa Dalal opened a free-standing radiology clinic. She had anticipated that the costs for the radiological tests would be primarily fored, but she found that

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Deepa Dalal opened a free-standing radiology clinic. She had anticipated that the costs for the radiological tests would be primarily fored, but she found that costs increased with the number of tests performed. Costs for this service over the past nine months are as follows: Month Total Cost January February March April May Radiology Tests 2,800 2,600 3,100 3,500 $133,500 135,060 175,000 170,600 176,900 186,600 174,450 195,510 185,300 3,400 3,700 3,840 June July August September Required: 4,100 3,450 1. Based on the information provided, select the correct graph. Scattergraph: Scattergraph of Radiology Tests Scattergraph of Radiology Tests 5250.000 $250,000 5200,000 5200,000 $150,000 $110,000 .. Cost LOSE en ann con d. Scattergraph of Radiology Tests Scattergraph of Radiology Tests $250,000 1250.000 .. 5200,000 .. 5200.000 $150,000 5150.000 Cost .. .. Cost $100,000 $100,000 .. 550.000 350.000 10 1.000 4.000 5.000 100 2.000 3,000 Number of Tests 1000 00 2,000 3.000 Number of Tests The correct answer is Based on an examination of the scattergraph, does there appear to be a linear relationship between the cost of radiology service and the number of tests? 2. Compute the cost formula for radiology services using the high-low method. Round the intercept to the nearest dollar and round the slope to 2 decimal places. Yes 3. Calculate the predicted cost of radiology services for October for 3,500 tests using the formula found in Requirement 2. For computations, carry amounts out to two decimal places. Round your final answer to the nearest dollar

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