Question
Month: Radiology Tests: Total Costs: January 2,800 $133,500 February 2,600 $135,060 March 3,100 $175,000 April 3,500 $170,600 May 3,400 $176,900 June 3,700 $186,600 July 3,840
Month: Radiology Tests: Total Costs:
January 2,800 $133,500
February 2,600 $135,060
March 3,100 $175,000
April 3,500 $170,600
May 3,400 $176,900
June 3,700 $186,600
July 3,840 $174,450
August 4,100 $195,510
September 3,450 $15,300
1. Compute the cost formula for radiology services using the method of least square
2. Using the formula computed in requirement 1, what is the predicted cost of radiology services for October for 3,500 appointments? (Round the answer to the nearest dollar)
3. What does the coefficient of determination tell you about the cost formula computed in requirement 1? What are the t statistics for the number of tests and the intercept term? What do these statistics tell you about the choice of number of tests as the independent variable and the probability that there are fixed costs?
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Auditing And Assurance Services Plus Pearson MyLab Accounting With Pearson EText
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan
17th Global Edition
1292312106, 978-1292312101
