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Month TOTAL COST X1($45) X2($90) X3($60) X4($105) 1 23000 30 100 205 75 2 25000 38 120 180 90 3 27000 50 80 140 150

Month TOTAL COST X1($45) X2($90) X3($60) X4($105)
1 23000 30 100 205 75
2 25000 38 120 180 90
3 27000 50 80 140 150
4 19000 20 90 120 100
5 20000 67 50 160 80
6 27000 90 75 210 105
7 25500 20 110 190 110
8 21500 15 120 175 80
9 26000 60 85 125 140
10 22000 20 90 100 140
11 22800 20 70 150 130
12 26500 72 60 200

120

a) use multiple regression analysis to determine the unit cost of earch procedure (x1-x4). how much variation in monthly cost is explained by your cost esimating equation? b)evaluate the rates proposed by the local business. assuming south town has excess capacity and no employees of the local business currently patronize the clinic, what are your recommendations regarding the proposal? C evaluate the rates proposed (x1$45 - x4$105) by the local business. assuming south town is operating at capacity and would have to turn current customers away if it agrees to provide health services to the local business, what are your recommendations regarding the proposal

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