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QUESTION ONE Mr. BIZIMUNGU Jean Claude is the transport officer of a Muhanga-based NGO. He is in charge of all the vehicles and motor cycles
QUESTION ONE Mr. BIZIMUNGU Jean Claude is the transport officer of a Muhanga-based NGO. He is in charge of all the vehicles and motor cycles owned by the NGO. The following data pertains to the vehicles and motorcycles maintenance costs for the first five months of 2019 Month Volume(units) Maintenance Costs Frws 20 40,000 January February 40 56,000 March 100 164,000 80 120,000 April May 60 80,000 Required: (i) Using the High-Low method technique, develop a mathematical linear regression model that depicts the NGO's maintenance costs behavior. (18 Marks) Predict the maintenance cost for a month in which 250 units are serviced. (iii) (4 Marks) Elucidate on the limitations of using the high-low method to segregate the mixed costs into fixed and variable components
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