Roche Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its eleven helicopters makes between 800 and 1,600 round-trips per year. The records indicate that a helicopter that has made 800 round-trips in the year incurs an average operating cost of $800 per round-trip, and one that has made 1,600 round-trips in the year incurs an average operating cost of $650 per round-trip.

incurs an average coerating cont of 3650 per round.trip. Resid the eosurnmests aliport duing the year. Requirements 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. 2. Give examples of costs that would be included in a and in b. 3. If Roche Travel expects each helicopter to make, on average, 1,100 round-trips in the coming year, what should be its estimated operating budget for the helicopter fleet