Question
RappRapp Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its 6 helicopters makes between
RappRapp Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its 6 helicopters makes between 1200, and 2400 round-trips per year. The records indicate that a helicopter that has made 1200 round-trips in the year incurs an average operating cost of $535 per round-trip, and one that has made 2,400 round-trips in the year incurs an average operating cost of $500 per round-trip.
. 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.
Begin by selecting which type of costs
"a"
and
"b"
represent, then select the costs that correlate with that cost type, use each cost only once.
"a" = |
| "b" = |
|
|
| ||
|
| ||
|
|
If
RappRapp Travel expects each helicopter to make, on average,1,800 round-trips in the coming year, what should its estimated operating budget for the helicopter fleet be?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started