Tidal Co. produces surfboards and paddleboards. Presented is the monthly information on the production volume and manufacturing costs:
	Total Manufacturing Costs	Total Boards produced	Surfboards Produced	Paddleboards Produced
January-17	37,908	158	68	90
February-17	88,020	284	162	122
March-17	47,318	189	99	90
April-17	47,716	221	81	140
May-17	42,593	225	45	180
June-17	42,512	198	63	135
July-17	40,028	162	72	90
August-17	53,940	253	95	158
September-17	46,839	230	68	162
October-17	49,842	212	99	113
November-17	41,601	176	77	99
December-17	54,392	234	108	126
January-18	48,337	225	81	144
February-18	51,840	243	90	153
March-18	33,885	140	54	95

1. Use the high-low method to develop a cost-estimating equation for total manufacturing costs.

2. Use the chart feature of a spreadsheet to develop a scatter graph of total manufacturing costs and total units produced. Use the graph to identify any unusual observations.

3. Excluding any unusual observations, use the high-low method to develop a cost-estimating equation for total manufacturing costs. Comment on the results, comparing them with the results from Question 1.

Harborside Corp. produces swimsuits. Presented is the monthly information for the last 15 months:
	Total Manufacturing Costs	Total Swimsuits produced	Boardshorts Produced	Bikinis Produced
January-16	28,431	118	51	68
February-16	31,945	169	34	135
March-16	35,488	142	74	68
April-16	35,787	166	61	105
May-16	42,175	196	122	75
June-16	31,884	149	47	101
July-16	30,021	122	54	68
August-16	40,455	189	71	118
September-16	35,129	172	51	122
October-16	37,382	159	74	85
November-16	31,201	132	58	74
December-16	40,794	176	81	95
January-17	36,253	169	61	108
February-17	38,880	182	68	115
March-17	25,414	105	41	71
1. Use the high-low method to develop a cost-estimating equation for total manufacturing costs.

2. Use simple regression analysis to develop a cost-estimating equation for total manufacturing costs. A customer has offered to purchase 75 boardshorts for $195 per item. Management has asked your advice regarding whether or not to accept the offer. What advice do you have for management?

3. Use multiple regression analysis to develop a cost-estimating equation for total manufacturing costs. A customer has offered to purchase 75 boardshorts for $195 per item. Management has asked your advice regarding whether or not to accept the offer. What advice do you have for management?