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REQUIRED: 1. Plot the relationship between number of orders per week and weekly total costs on a graph. ( 0.5 marks) 2. Estimate the cost

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REQUIRED: 1. Plot the relationship between number of orders per week and weekly total costs on a graph. ( 0.5 marks) 2. Estimate the cost equation using the high-low method, and draw this line on your graph. (1 mark) 3. Daniel uses his computer to calculate the following regression formula: Total weekly costs =$13,042+($24.462 Number of weekly orders) Draw the regression line on your graph. ( 0.5 marks) 4. Is the regression line plausible (makes sense)? Explain. ( 0.5 marks) 5. Which cost function (estimated by the high-low method, or estimated using the regression method) is better? Explain briefly. ( 0.5 marks) 6. Did ORCO break even this season? Remember that each of the families paid a seasonal membership fee. (1 mark) 7. Assume that 1150 families join the club next year and that prices and costs do not change. How many orders, on average, must ORCO receive each week to break even? Assume that the season is again 10 weeks long. ( 1 mark) REQUIRED: 1. Plot the relationship between number of orders per week and weekly total costs on a graph. ( 0.5 marks) 2. Estimate the cost equation using the high-low method, and draw this line on your graph. (1 mark) 3. Daniel uses his computer to calculate the following regression formula: Total weekly costs =$13,042+($24.462 Number of weekly orders) Draw the regression line on your graph. ( 0.5 marks) 4. Is the regression line plausible (makes sense)? Explain. ( 0.5 marks) 5. Which cost function (estimated by the high-low method, or estimated using the regression method) is better? Explain briefly. ( 0.5 marks) 6. Did ORCO break even this season? Remember that each of the families paid a seasonal membership fee. (1 mark) 7. Assume that 1150 families join the club next year and that prices and costs do not change. How many orders, on average, must ORCO receive each week to break even? Assume that the season is again 10 weeks long. ( 1 mark)

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