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The administrator of Azalea Hills Hospital would like a cost formula linking the administrative costs involved in admitting patients to the number of patients admitted

The administrator of Azalea Hills Hospital would like a cost formula linking the administrative costs involved in admitting patients to the number of patients admitted during a month. The admitting departments costs and the number of patients admitted during the immediately preceding eight months are given in the following table:

Month Number of Patients Admitted Admitting epartment Costs
May 1,800 14,700
June 1,900 15,200
July 1,700 13,700
August 1,600 14,000
September 1,500 14,300
October 1,300 13,100
November 1,100 12,800
December 1,500 14,600

Use the scatterplot chart function in Excel to estimate the fixed and variable components of admitting costs. Round off your answers to two decimal places

Express the fixed and variable components of admitting costs as a cost formula in the form Y = a+ bX.

What is the R2 between X and Y?

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