RocheRoche

Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its

1111

helicopters makes between

1 comma 2001,200

and

2 comma 4002,400

round-trips per year. The records indicate that a helicopter that has made

1 comma 2001,200

round-trips in the year incurs an average operating cost of

$535535

per round-trip, and one that has made

2 comma 4002,400

round-trips in the year incurs an average operating cost of

$500500

per round-trip.

1.

Using the high-low method, estimate the linear relationship

y equals a plus bXy=a+bX,

where y is the total annual operating cost of a helicopter and X is the number ofround-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

RocheRoche

Travel expects each helicopter to make, on average,

1 comma 8001,800

round-trips in the coming year, what should its estimated operating budget for the helicopter fleet be?

Requirement 1. Using the high-low method, estimate the linear relationship

y equals a plus bXy=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.

=

+