Odessa, Inc., manufactures one model of computer desk. The following data are available regarding units shipped and total shipping costs:

Month	Number of Units Shipped	Total Shipping Cost
January	55	$3,150
February	50	3,000
March	75	4,000
April	60	4,150
May	45	3,000
June	30	1,950
July	80	3,550

Required: 1. Prepare a scattergraph of Odessas shipping cost and draw the line you believe best fits the data

Instructions: 1. Use the point tool (7 points) to plot each Units Shipped / Total cost combination. 2. To enter exact coordinates, double click on the point and enter the values for each Units Shipped and Total Cost. 3. Use the line tool provided to plot an approximate regression line for this data. To use the line tool, first click on the appropriate y-intercept point, then click the second appropriate point on the graph to create the line.

3. Using the high-low method, calculate Odessas total fixed shipping costs and variable shipping cost per unit.

Fixed Cost
Variable Cost per Unit

4. Perform a least-squares regression analysis on Odessas data.

	Coefficients
Intercept
X Variable

5. Using the regression output, create a linear equation (y = a + bx ) for estimating Odessas shipping costs.

Total Shipping Cost =

+

Number of Units Shipped