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Roche Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its 14 helicopters makes between
Roche Travel offers helicopter service from suburban towns to John F. Kennedy International Airport in New York City. Each of its 14 helicopters makes between 1,200 and 2,400 round-trips per year. The records indicate that a helicopter that has made 1,200 round-trips in the year incurs an average operating cost of $535 per round-trip, and one that has made 2,400 round-trips in the year incurs an average operating cost of $500 per round-trip. i Requirements y is the total annual operating cost of a helicopter and X is the number of round-trips it makes to JFK airport during the year. 1. Using the high-low method, estimate the linear relationship y = a +bX, where y is the total annual operating cost of a helicopter and X is the number of round-trips it makes to JFK airport during the year. 2. Give examples of costs that would be included in a and in b. 3. If Roche Travel expects each helicopter to make, on average, 1,800 round-trips in the coming year, what should its estimated operating budget for the helicopter fleet be? Print Done
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