Scatter Diagrams and High$-$Low Cost Estimation

of road. The following information is available regarding current$-$year operations:

Use the information from the high$-$ and low$-$volume months to develop a cost$-$estimating equation for monthly labor costs.

Monthly labor costs $=$$$,3,955vv+$$$,13\mathrm{.}4vvx$

estimating equation for monthly labor costs.

Monthly labor costs $=$$$4,152\mathrm{.}75+$$$4,152\mathrm{.}75$

Adjust the equation developed in requirement $($b$)$ to incorporate the effect of an anticipated $5\%$ increase in wages.