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Lalin Ton is a French-Turkish entrepreneur who owns Le Patissier Rouge, a bakery and pastry shop in Chicago's Lincoln Park neighborhood. After a few years in which she was just trying to sell enough pastries to pay the bills Le Patissier Rouge achieved some notoriety and profitability. At this point, Ton felt the need to build a cost system to better understand the economic implications of her decisions. One of the first steps was to estimate an overhead cost function. She thought that the overhead costs could be related to the number of hours the oven was working. To that end, in November 2020 Ton collected the previous ten months of data for overhead cost and oven hours at Le Patissier Rouge. Total Oven Hours Month Overhead Cost January $ 4,400 1,100 February $ 4,100 1,000 March $12,500 2,000 April $ 4,775 1,250 May $ 4,700 1,200 June $ 5,250 1,500 July $ 4,200 750 August $ 4,325 1,050 September $ 5,500 1,600 October $ 4,500 1,150 The budget calls for the production of 600 cakes in November. Each cake requires two oven hours. a. Look at the scattergraph of overhead cost (Y) against machine hours (X). 1 . Does there appear to be a relationship? ii. Is the linear assumption valid? iii. Are there any outliers? If so, what might explain them? b. Perform a simple regression analysis using all 10 observations. i . Predict overhead cost for November. ii. Is there a significant variable cost per machine hour? Is there a significant fixed cost element? C. Perform a simple regression analysis assuming that the relevant range of operations is 500 to 800 cakes. 1 . Predict overhead cost for November