Your company was hired to study the costs that universities face and to help your university in question to examine how their expenditures relate to similar competitors.

Using least-squared regressions, you estimated the fixed and variable costs for all universities together. However, your boss thinks that private and public universities might have different business models, which could lead to different cost behaviors.

Based on this conjecture, calculate the cost behavior based on whether the universities are public or private.

Are the fixed costs and variable costs per unit the same for private and public universities? Include in your answer the equation for both the private and public universities. (2 points)

How much variation is explained by your models? Which model has the highest explanatory power (R-squared)? (1 point)

Calculate the estimated total cost for the university assigned to your group using the model that you estimated in 1.a [see page 3 of this document]. (1 point)

Calculate the unexpected/unexplained total cost of the university assigned to your group (using the model that you estimated in 1.a) [see page 3 of this document]. (1 point)