High-Low Method, Method of Least Squares, Correlation Big Mike's, a large hardware store, has gathered data on its overhead activities and associated costs for the past 10 months. Nizam Sanjay, a member of the controller's department, believes that overhead activities and costs should be classified into groups that have the same driver. He has decided that unloading incoming goods, counting goods, and inspecting goods can be grouped together as a more general receiving activity, since these three activities are all driven by the number of receiving orders. The 10 months of data shown below have been gathered for the receiving activity. Receiving Orders Receiving Cost Month 1 1,000 1,340 2 $12,170 12.040 13.750 9.930 3 1,150 4 900 1,350 5 15.09 1,400 1,600 16,640 8 1,490 1,800 1.700 14.800 17.00 15.000 10 Required: 1. Choose the correct scatter graph that represents the data provided above. 320.000 $10,000 $1,000 $14.000 $14.000 $12.000 $1.000 Cost $10.000 $4.000 $4,000 $4.000 $4.000 SUO 50 10 o 2.000 2.000 500 1.000 1.500 Number of Receiving Orders 500 1,000 1500 Number of Receiving Orders $20.000 $20.000 $18.000 $16.000 $14.000 $12.000 $16.000 $14.000 . . . $4.000 14,000 $4.000 $2.000 SO $4.000 14.000 $4.000 50 o 2,000 2,000 500 100 Number of Receiving Orders 500 Number of Receiving Orders 4. Using the method of least squares, prepare a cost formula for the receiving activity. Round the intercept to the nearest dollar and round the slope to the nearest cent. 6.99 x What is the coefficient of determination? Round your answer to two decimal places. Adjusted R2 =