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 Department's costs and the number of patients admitted during the immediately preceding eight months are given in the following table:MonthNumber of Patients AdmittedAdmitting Department CostsMay 1,800 $14,700 June 1,900 14,200 July 1,700 13,700 August 1,600 14,000 September 1,500 14,300 October 1,200 12,800 November 1,100 13,100 December 1,500 14,600 Required:a) Using the high-low method, develop a cost function in form of TC = F + V * Q for Azalea Hills Hospital, where TC is Total Admitting Department Cost, and Q is Number of Patients Admitted.b) Estimate Admitting Department cost for January if the hospital admits 1,865 patients. c) In words, briefly contrast the high-low method with the regression analysis method of cost estimation. Which method would you recommend and why?

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 Department's costs and the number of patients admitted during the immediately preceding eight months are given in the following table: Number of Patients Admitting Department Month Admitted Costs May 1,800 $14,700 June 1,900 14,200 July 1,700 13,700 August 1,600 14,000 September 1,500 14,300 October 1,200 12,800 November 1,100 13,100 December 1,500 14,600 Required: a) Using the high-low method, develop a cost function in form of TC = F + V * Q for Azalea Hills Hospital, where TC is Total Admitting Department Cost, and Q is Number of Patients Admitted. b) Estimate Admitting Department cost for January if the hospital admits 1,865 patients. c) In words, briefly contrast the high-low method with the regression analysis method of cost estimation. Which method would you recommend and why