The Lakeshore Hotels guest-days of occupancy and custodial supplies expense over the last seven months were:

Month Guest-Days of Occupancy Custodial Supplies Expense March . . . . . . . . . . . . . . . . . . . . . 4,000 $7,500 April . . . . . . . . . . . . . . . . . . . . . . . 6,500 $8,250 May . . . . . . . . . . . . . . . . . . . . . . . 8,000 $10,500 June . . . . . . . . . . . . . . . . . . . . . . . 10,500 $12,000 July . . . . . . . . . . . . . . . . . . . . . . . 12,000 $13,500 August . . . . . . . . . . . . . . . . . . . . . 9,000 $10,750 September . . . . . . . . . . . . . . . . . . 7,500 $9,750 Guest-days is a measure of the overall activity at the hotel. For example, a guest who stays at the hotel for three days is counted as three guest-days.

4. Comment on the accuracy of your high-low estimates assuming a least-squares regression analysis estimated the total fixed costs to be $3,973.10 per month and the variable cost to be $0.77 per guest-day. How would the straight line that you drew in requirement 3 differ from a straight line that minimizes the sum of the squared errors?