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The following table shows the number of patients treated and the total costs for hospital for each of the past four months: a Total Cost
The following table shows the number of patients treated and the total costs for hospital for each of the past four months: a Total Cost ($) Month Patients January 5,000 37,500 February 8,400 45,660 March 8,300 45,050 April 5,900 39,420 Required: a) Use the high-low method to estimate the cost behaviour for the hospital's Costs, assuming that variable costs vary in proportion to the number of patients treated. Express the cost behaviour in a cost function (Y = a +bX, where x = number of patients to be treated). (6 marks) b) In May, the hospital expects to treat 6,000 patients. Predict the hospital's total costs for May. (3 marks) c) Some businesses use only approximations when estimating cost functions. What are some possible reasons for this
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