Usufructuary rents kayaks and canoes for use on the local lake. The manager, Uriel Angel wants to estimate next month's office costs. She has the following information. Month Boats Rented Transactions Processed Total Office Costs 28 $1,150 30 40 36 1,730 February March April May June 50 43 2,010 60 50 2,050 120 82 3,040 110 80 125 78 July August September October 3,020 3,030 2,330 2,210 75 65 60 55 Required: 1. Using the High-Low method create a total cost equation using based on number of boats rented. If Usufructuary is expected to rent 48 boats in November, what total office costs do you predict? 2. Using the High-Low method create a total cost equation using based on number of WE DEGREE... FL Home 2. Using the High-Low method create a total cost equation using based on number of transactions. If Usufructuary is expected to have 45 transactions in November, what total office costs do you predict? 3. Uriel ran a regression and got the following results for three models. Comment on the comparative strength of the three models. Which one would you use? Why? What costs do you predict for November? Model Boats Transactions Both .930 .960 .964 R Square Adjusted R square 1920 .955 .951 F 93 169 79 948.21 Intercept P value 396.08 509.23 .0004 .0337 .0624 X 18.15 33.27 P value 4.39 4957 .0001 .0001 X-2 P value 25.58 .0580 Editor HTML BIVA - A - IE2 2 1 1 * X. ! EE PNV G+ T 1 12pt Paragra WE