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Ramsay Travel offers helicopter service from suburban towns to John F. Kennedy international Airport in New York City. Each of its 12 helicopters makes between

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Ramsay Travel offers helicopter service from suburban towns to John F. Kennedy international Airport in New York City. Each of its 12 helicopters makes between 900 and 1, 500 round-trips per year. The records indicate that a helicopter that has made 900 round-trips in the year incurs an average operating cost of $750 per round-trip, and one that has made 1, 500 round-trips in the year incurs an average operating cost of $600 per round-trip. 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 Ramsay Travel expects each helicopter to make, on average, 1, 200 round-trips in the coming year, what should its estimated operating budget for the helicopter fleet be? Using the hig-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. = +

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