The management of Buff Sports Stadium believes that the number of sporting events each month is a measure of activity for total clean up cost. Shown below are event figures and total clean up costs for the past four months:
|
|
Number of |
Total |
|
|
Sporting |
Clean up |
|
|
Events |
Cost |
|
July |
28 |
$30,900 |
|
August |
34 |
$34,200 |
|
September |
16 |
$20,700 |
|
October |
22 |
$28,200 |
Required:
a. Estimate Buff”s cost formula for monthly clean up cost using the high low method.
b. Estimate Buff”s cost formula for monthly clean up cost using the least squares regression method.