Use the following data to answer the next two (2) problems***

MONTH	ACTIVITY	COST
January	450	16,250
February	700	18,600
March	750	19,200
April	525	16,750
May	800	20,000
June	675	18,000
July	650	17,500
August	400	16,000
September	425	16,025
October	600	17,475

1.Using the High-Low method, what is the estimate of fixed costs?

2. The results of a least squares regression are as follows:

Intercept: $2,250

Slope: 1.84

Coefficient of correlation .86

Standard error 640

What is the predictive model (the cost formula)?