Required Information [The following information applies to the questions displayed below.] Professor John Morton has just been appointed chairperson of the Finance Department at Westland University. In reviewing the department's cost records, Professor Morton has found the following total cost associated with Finance 101 over the last five terms: Number of Sections Term Offered Total Cost Fall, last year Winter, last year 4 $ 11,000 2 $ 6,000 Summer, last year Fall, this year 5 $ 11,500 3 $ 7,500 Winter, this year 7 $ 12,000 Professor Morton knows that there are some variable costs, such as amounts paid to graduate assistants, associated with the course. He would like to have the variable and fixed costs separated for planning purposes. 3-a. Assume that because of the small number of sections offered during the Winter Term this year, Professor Morton will ha to offer nine sections of Finance 101 during the Fall Term. Compute the expected total cost for Finance 101. 3-b. Can you see any problem with using the cost formula from (2) above to derive this total cost figure? Complete this question by entering your answers in the tabs below. Required 3A Required 3B Assume that because of the small number of sections offered during the Winter Term this year, Professor Morton will have to offer nine sections of Finance 101 during the Fall Term. Compute the expected total cost for Finance 101. (Round intermediate calculations and final answers to the nearest whole dollar amount.) Fixed cost Variable cost Total expected cost < Required 3A Required 3B > Complete this question by entering your answers in the tabs below. Required 3A Required 3B Can you see any problem with using the cost formula from part (2) to derive this total cost figure? Coefficient estimates may have high variance. Prediction is not guaranteed to become actual. Prediction is out of the relevant range. Prediction is based on old data. < Required 3A Required 3B >