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The Fairmont Machine Shop wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data: Month Cost of
The Fairmont Machine Shop wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data:
| Month | Cost of Electricity (Y) | Direct Labor-Hours (X) |
| January | $14,000 | 1,500 |
| April | $15,000 | 1,700 |
| July | $17,000 | 2,000 |
| October | $14,500 | 1,600 |
What would be the best equation using the high-low method?
| Y = $4,000 + $7X | ||
| Y = $0 + $9X | ||
| Y = $1,000 + $8X | ||
| Y = $5,000 + $6X |
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