Professor John Morton has just been appointed chairperson of the Finance Department at Westland University. In reviewing the department's cost records, Professor Morton has found the following total cost associated with Finance 101 over the last five terms: Term Fall, last year Winter, last year. Summer, last year Fall, this year Winter, this year Number of Sections Offered 2 Total Cost $ 10,000 $ 14,000 $ 7,000 $ 13,000 $ 9,500 Professor Morton knows that there are some variable costs, such as amounts paid to graduate assistants, associated with the course. He would like to have the variable and fixed costs separated for planning purposes. 2-a. Using the least-squares regression method, estimate the variable cost per section and the total fixed cost per term for Finance 101. 2-b. Express these estimates in the form Y= a +bx.
Professor John Morton has just been appointed chairperson of the Finance Department at Westland University. In reviewing the department's cost records, Professor Morton has found the following total cost associated with Finance 101 over the last five terms: Term Fall, last year Winter, last year. Summer, last year Fall, this year Winter, this year Number of Sections Offered 2 Total Cost $ 10,000 $ 14,000 $ 7,000 $ 13,000 $ 9,500 Professor Morton knows that there are some variable costs, such as amounts paid to graduate assistants, associated with the course. He would like to have the variable and fixed costs separated for planning purposes. 2-a. Using the least-squares regression method, estimate the variable cost per section and the total fixed cost per term for Finance 101. 2-b. Express these estimates in the form Y= a +bx.
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Transcribed Image Text:Professor John Morton has just been appointed chairperson of the Finance Department at Westland University. In
reviewing the department's cost records, Professor Morton has found the following total cost associated with Finance 101
over the last five terms:
Term
Fall, last year
Winter, last year
Summer, last year
Fall, this year
Winter, this year
Number of
Sections
Offered
6
2
Total Cost
$ 10,000
$ 14,000
$7,000
$ 13,000
$ 9,500
Professor Morton knows that there are some variable costs, such as amounts paid to graduate assistants, associated with
the course. He would like to have the variable and fixed costs separated for planning purposes.
2-a. Using the least-squares regression method, estimate the variable cost per section and the total fixed cost per term for Finance 101.
2-b. Express these estimates in the form Y = a + bx.
Fixed cost per term
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Using the least-squares fegression method, estimate the variable cost per section and the total fixed cost per term for Finance
101.
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