Paste B I UB a. Av L18 X & fx A B D E F G H 7 8 9 10 On November 15, 2009, Sandra Cook, a newly hired cost analyst at Peterson Company, was asked to predict total costs for the company's operations in 2010, when 530 units are expected to be produced. She collected the following quarterly data: Production in Total Costs Quarter/Year Requirement 1. Using the high-low method, prepare a prediction of total costs. Units (8) (S) 01/06 73 715 Variable cost per unit ($) Q2/06 76 709 Fixed cost per quarter ($) Q3/06 68 640 Cost Function Q4/06 133 1,185 Predicted Total costs for the expected units (S) 01/07 122 1,010 Q2/07 125 1,105 Requirement 2. Using the Regression Analysis by Excel's Statistical Functions Q3/07 122 1,113 (Slope and Intercept), prepare a prediction of total costs. 04/07 135 1,211 Variable cost per unit ($) 01/08 121 982 Fixed cost per quarter ($) 02/08 126 1,060 Cost Function Q3/08 112 990 Predicted Total costs for the expected units ($) Q4/08 91 951 01/09 81 829 Requirement 2-1. Draw the Regression Graph with the scatter chart. 02/09 119 1,044 Add Trendline with the cost equation and R-squared 03/09 87 911 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 45 44 45 46 47 48 49 50 51 Requirement 3. Which prediction analysis is better off than the other? Why and Why not the other? The End of the Problem Set 2 Total Instruction. Problem Set 1 Problem Set 2 Problem Set 3 Select destination and press ENTER or choose Paste OCT 25