The Business School at Eastern College is accumulating data as a first step in the preparation of next year's budget development. One cost that is being looked at closely is administrative costs as a function of student credit hours. Data on administrative costs and credit hours for the most recent academic year is shown below:

Administrative Credit

Month: Costs: Hours:

July $129,301 250

August 82,613 115

September 228,580 1,392

October 216,394 1,000

November 258,263 1,309

December 184,449 1,112

January 219,137 1,339

February 245,000 1,373

March 209,642 1,064

April 191,925 1,123

May 249,978 1,360

June 170,418 420

July 128,167 315

Total $2,385,700 11,857

Average $198,808 988

The controller's office has analyzed the data and has given you the results from the regression analysis:

SUMMARY OUTPUT:

Regression Statistics:

Multiple R 0.93346722

R Square 0.87136104

Adjusted R Square 0.85966659

Standard Error 19943.5805

Observations 13

ANOVA:

Regression Residual Total

df 1 11 12

SS 29636340628 4375210454 34011551082

MS 2.96363E=10 397746405

F 74.5106436

Significance F 3.14788E-06

Intercept Credit Hours

Coefficients $96,409.42 $103.56

Standard Error 12521.26261 11.9974027

t-Stat 7.69965611 8.6319548

P-value 9.381E-06 3.1479E-06

Lower 95% 68850.28899 77.15491912

Upper 95% 123968.543 129.967156

Lower 95.0% 68850.289 77.1549191

Upper 95.0% 123968.543 129.967156

1. How does the administrative cost function use the high and low method?
2. Using the highest and lowest point method, what is the total administrative cost if there are 1000 credit hours?
3. How is the administrative cost function using the regression method?
4. Using the regression method, if there are 1000 credit hours, what is the total administrative cost?
5. Based on the regression output above, the coefficient of determination = 87.14%. Explain the meaning!
6. The conclusion is how the behavior of administrative boarding houses? Does it behave fixed, variable or mixed?