Highlight all of the volume and cost data with the cursor. Click on the insert tab on the menu bar and then choose Scatter as the chart type. Next, click on Move chart location on the menu bar to move the chart to a new sheet (so that its a full page).

Click someplace on the middle of the chart. Now click on the plus sign in the green box on the upper right of the graph. Be sure you check the following: Axis, Axis Titles, Chart Title. Then hover over Trendline and select More Options and click on the greater than triangle. Now select linear and scroll down to the forecast section and enter the lowest observation number of the independent variable (# of trips) in the backward data box. Finally, check the Display Equation on chart box and Display R-squared value on chart boxes.

Identify any data points you think are outliers by pointing to them with an arrow using insert and shapes, then use a text box to label the possible outlier(s) or comment that none appear to exist. To draw in the high-low line, choose the insert, then shapes, then click on the straight line from the list of possible shapes. Put your cursor on the highest-volume data point and drag the line through the lowest-volume data point, all the way back to the y-axis. Now check: does the fixed cost in your high-low equation agree with the line you just drew? It should. Label the high-low line as well as the trend line (AKA regression line). Add a descriptive title to the scatter plot on the page and appropriate labels for each axis. That is, make it look like something you would present to a client!

Use insert textbox to comment on which line looks like it better represents the data points. Explain why the two lines are different.

Number of Operating Trips Costs anuary February March 705 $ 29,965 High-Low Cost Equation 710 $ 27,910 950 $ Level #of Trips Operating Cost 33,503 April May 670 $ High 26,312 1074 30974 504 $ 25,160 504 Low 25160 880 $ 29,605 Difference 5814 une 570 uly August September October 695 $ Variable cost per trip 5814/570= 21,496 10.2 610 $ 27,320 744 S Total Cost at High Level 28,247 30974 1,020 $ Less Variable cost at a High Level 10.20*1074 10954,8 37,511 November Fixed Cost 1,074 $ 30,974 20019.2 December 1,050 $ 34,987 Number of Operating Trips Costs anuary February March 705 $ 29,965 High-Low Cost Equation 710 $ 27,910 950 $ Level #of Trips Operating Cost 33,503 April May 670 $ High 26,312 1074 30974 504 $ 25,160 504 Low 25160 880 $ 29,605 Difference 5814 une 570 uly August September October 695 $ Variable cost per trip 5814/570= 21,496 10.2 610 $ 27,320 744 S Total Cost at High Level 28,247 30974 1,020 $ Less Variable cost at a High Level 10.20*1074 10954,8 37,511 November Fixed Cost 1,074 $ 30,974 20019.2 December 1,050 $ 34,987