Thomas Ltd. operates a chain of shops. The company's chief executive officer is interested in accumulating some information on the utility costs incurred by the company. You have been asked to analyze the following twelve months data.

Month	Utility Cost	Number of Units
January	$ 3,825	11,250
February	$ 3,975	11,700
March	$ 4,238	12,000
April	$ 4,725	13,800
May	$ 4,800	14,700
June	$ 5,025	16,200
July	$ 5,276	17,700
August	$ 5,250	16,800
September	$ 4,650	14,250
October	$ 4,575	13,500
November	$ 4,200	12,750
December	$ 4,425	13,500

Question 13 (3 points)

Question 13 options:

Using the high-low method calculate the variable rate for total utility costs.

Question 14 (2 points)

Question 14 options:

Using the high-low method and variable rate entered above calculate the fixed cost for total utility costs.

Question 15 (3 points)

Question 15 options:

Using the method of least squares, your regression analysis produced an intercept of $1,300 and independent variable of 0.30.

Using the results of the regression analysis calculate the total utility costs for 10,500 units.

Question 16 (2 points)

The CEO would like to understand what the advantages and disadvantages of the method of least squares and the high-low method.

Select all of the advantages of the high-low method from the list below.

Question 16 options:

	Uses only two data points
	Simple to calculate
	Excludes outliers automatically
	Uses all of the data points
	This method is objective