Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

High-Low Method, Scatterplot, Regression Weber Valley Regional Hospital has collected data on all of its activities for the past 16 months. Data for cardiac nursing

High-Low Method, Scatterplot, Regression

Weber Valley Regional Hospital has collected data on all of its activities for the past 16 months. Data for cardiac nursing care follow:

Y Cost X Hours of Nursing Care
May Year 1 $59,600 1,400
June Year 1 57,150 1,350
July Year 1 61,110 1,460
August Year 1 65,800 1,600
September Year 1 69,500 1,700
October Year 1 64,250 1,550
November Year 1 52,000 1,200
December Year 1 66,000 1,600
January Year 2 83,000 1,800
February Year 2 66,550 1,330
March Year 2 79,500 1,700
April Year 2 76,000 1,600
May Year 2 68,500 1,400
June Year 2 73,150 1,550
July Year 2 73,175 1,505
August Year 2 66,150 1,290

image text in transcribed

Required: In the computations below, use intercepts rounded to the nearest whole number and use X variable coefficients rounded to 2 decimal places. 1. Using the high-low method, calculate the variable rate per hour and the fixed cost for the nursing care activity. Enter negative answers with a minus sign. $ $ Y = + 51.67 -10,006 x 2. Run a regression on the data, using hours of nursing care as the independent variable. Predict cost for the cardiac nursing care for September Year 2 if 1,400 hours of nursing care are forecast. If required, round your answer to the nearest dollar. > Y = $ 63,696 3. Upon looking into the events that happened at the end of Year 1, you find that the cardiology ward bought a cardiac-monitoring machine for the nursing station. Administrators also decided to add a new supervisory position for the evening shift. Monthly depreciation on the monitor and the salary of the new supervisor together total $10,000. Now, run two regression equations, one for the observations from Year 1 and the second using only the observations for the eight months in Year 2. What is your predicted cost of the cardiac nursing care activity for September Year 2 if 1,400 hours of nursing care are forecast? When required, round your answer to two decimal places. Y = $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

ACCA Approved Study Text P7 Advanced Audit And Assurance

Authors: BPP

1st Edition

1472744349, 978-1472744340

More Books

Students also viewed these Accounting questions

Question

b. What groups were most represented? Why do you think this is so?

Answered: 1 week ago