The Fairmont Machine Shop wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data: Month Cost of Electricity (Y) Direct Labor-Hours (X) January $14,000 April $15,000 July $17,000 1,500 1,700 2,000 1,600 October $14,500 What would be the best equation using the high-low method? a. Y = $4,000+ $7X b. Y = $0 + $9X c. Y = $1,000+ $8X d. Y = $5,000+ $6X
The Fairmont Machine Shop wants to develop a cost estimating equation for its monthly cost of electricity. It has the following data: Month Cost of Electricity (Y) Direct Labor-Hours (X) January $14,000 April $15,000 July $17,000 1,500 1,700 2,000 1,600 October $14,500 What would be the best equation using the high-low method? a. Y = $4,000+ $7X b. Y = $0 + $9X c. Y = $1,000+ $8X d. Y = $5,000+ $6X
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Transcribed Image Text:The Fairmont Machine Shop wants to develop a cost
estimating equation for its monthly cost of electricity. It has
the following data:
Month Cost of Electricity (Y) Direct Labor-Hours (X)
January $14,000
April
$15,000
July
$17,000
1,500
1,700
2,000
1,600
October $14,500
What would be the best equation using the high-low
method?
a. Y = $4,000+ $7X
b. Y = $0 + $9X
c. Y = $1,000+ $8X
d. Y = $5,000+ $6X
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