Watson College includes the cost of all textbooks, lab supplies, and course packets in its tuition. Facing increasing financial pressures, Watson College is interested in predicting the costs associated with copying class notes (i.e., making course packets for students). Watson€™s vice president of finance has provided you with the following data regarding the total costs of printing course packets, and the corresponding class size for six representative classes:

Required:
a. Plot the relation between the total cost of making course packets for a class (y - axis) and class size (x-axis). Does the relation between the cost of making course packets and class size appear to be linear?
b. Using Excel, fit a regression line to Watson College€™s course packet data. What are the fixed costs per class associated with preparing a course packet, and what is the variable cost per student?
c. Comment on the results. Does the regression line appear to €œfit€ the data? How might the vice president further increase the accuracy of the costestimate?

Transcribed Image Text:

Tolal Costs of Making Class Size (Students Corse Packets for the Class 10 20 30 40 50 60 $175 $225 $268 $290 $345 $870