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Rabuet Travel offers helicopter service from suburban towns to John F . Kennedy International Airport in New York City. Each of its eleven helicopters makes

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Rabuet Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its eleven helicopters makes between 1,100 and 2,200 round-trips per
year. The records indicate that a helicopter that has made 1,100 round-trips in the year incurs an average operating cost of $500 per round-trip, and one that has made 2,200 round-trips in the year
incurs an average operating cost of $400 per round-trip.
Read the requirements.
Requirement 1. Using the high-low method, estimate the linear relationship y=a+bx, where y is the total annual operating cost of a helicopter and x is the number of round-trips it makes to JFK
airport during the year.
Requirements
Using the high-low method, estimate the linear relationship y=a+bx, where y
is the total annual operating cost of a helicopter and x is the number
of round-trips it makes to JFK airport during the year.
Give examples of costs that would be included in a and in b.
If Rabuet Travel expects each helicopter to make, on average, 1,600
round-trips in the coming year, what should be its estimated operating budget
for the helicopter fleet?
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