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The head of the radiology department at Majestic River Hospital in Woodstock. New Brunswick, believes the utility costs incurred in her department are a


The head of the radiology department at Majestic River Hospital in Woodstock. New Brunswick, believes the utility costs incurred in her department are a mixed cost. She thinks that utility costs are likely related to how many patients per month receive a CAT scan. The scanner uses a large amount of electricity and can't be turned off because of how long it takes to warm up for each use on a patient. When the scanner is used on a patient a burst of electricity is consumed. After each use on a patient, the scanner goes into a sleep mode and consumes a small amount of electricity. Data on the number of scans per month and monthly utility costs for the past year are provided below. Number of Seans Utility Costs Month $2.200 60 January $2.,600 70 February $2.900 March 90 $3.300 120 April $3,000 100 May $3,600 June 130 July 150 $4,000 140 $3.600 August 110 $3.100 September $2.500 80 October $4.500 November 160 50 S1.850 December Requiredi 1. Prepare a scattergraph plot. Is the number of CAT scans likely a good predictor of total utility costs? 2. Using least-squares regression, estimate the fxed cost and variable cost elements of monthly utility costs. Estimate the fixed cost element to the nearest dollar and the variable cost element to the nearest cent.

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