Question 8 GFT decided to statistically test the idea that costs increased after month 15 (for what ever reason) using a linear regression model that includes a step cost to capture the apparent increase after month 15. The model they estimated is: Total Costs - bo+ b # of steps + b the number of clients bo is the estimate of monthly fixed costs b is the cost per step. For months 1 to 15 the number of steps = 0 and For for months 16 to 30 the number of steps = 1 bz is the variable cost per client The linear regression results were: Variable Constant Steps Coef. Estimate 17,353.6 12,203.9 Std Error 3,398.42 1,220.17 t-Statistic 5.1 10.0 # of Clients 37.77 5.52 6.8 Adj R = .85 10 pts Based on the regression results, if GFT forecasted the next two months (both months are subsequent to the end of the data collection period) to have 800 and 900 clients, respectively, what would be the total expected costs for this two month period? Question 9 GFT decided to statistically test the idea that costs increased after month 15 (for what ever reason) using a linear regression model that includes a step cost to capture the apparent increase after month 15. The model they estimated is: Total Costs = bo+b # of steps + b the number of clients bo is the estimate of monthly fixed costs b is the cost per step. For months 1 to 15 the number of steps -0 and For for months 16 to 30 the number of steps = 1 bz is the variable cost per client The linear regression results were: Variable Constant Steps Coef. Estimate 17,353.6 12,203.9 Std Error 3,398.42 t-Statistic 5.1 1,220.17 10.0 # of Clients 37.77 5.52 6.8 Adj R = .85 10 pts GFT has averaged about 575 clients per month over the 30 month period. Based on the regression results, determine the expected cost per tour for an average month that occurs after the data collection period. Then use that estimate to calculate the price per tour GFT should charge in order to generate a margin equal to 15% of cost. Round to the nearest $1.00. Your answer should be the price per client that GFT should charge.