The Paige Company wants to develop a cost equation to determine its total electricity cost for a given month. It has determined that kilowatt hours used is the best predictor of electricity cost. It has collected the following data for the months of January through August of the current year to help in developing the cost equation.

PAIGE COMPANY

DATA FOR ESTIMATING ELECTRICITY COST

Month Electricity Cost Kilowatt Hours Used

January $ $50,0004,500$

February $65,0006,000$

March $40,0003,500$

April $30,0002,500$

May $60,0005,400$

June $70,0007,200$

July $75,0008,300$

August $69,0006,800$

After running the data through regression analysis, the following output results were obtained.

PAIGE COMPANY

DATA FOR ESTIMATING ELECTRICITY COST

OUTPUT FROM REGRESSION ANALYSIS

Intercept $13,108$

b coefficient $8\mathrm{.}0122$

R squared $0\mathrm{.}9643$

Using the high$-$low method for cost estimation, what is the cost equation that the company should use to estimate electricity cost?

Question $18$ options:

Electricity Cost $=$ $$10,600+($$ $7\mathrm{.}759$ x Kilowatt Hours Used$).$

Electricity Cost $=$ $$14,476+($$ $7\mathrm{.}292$ x Kilowatt Hours Used$).$

Electricity Cost $=$ $$7\mathrm{.}7590+($$$10,600$ x Kilowatt Hours Used$).$

Electricity Cost $=$ $ $6,434+($$ $8\mathrm{.}261$ x Kilowatt Hours Used$).$