A doctor is trying to determine how overhead costs behave as a function of monthly physician contact hours billed to patients. The historical data are as follows:

Total Overhead Costs       Physician Contact Hours Billed to Patients

        $105,000                                                   100

          125,000                                                    150

          130,000                                                    200

          142,000                                                    250

          148,000                                                    300

Compute the linear cost function relating total overhead costs to physician contact hours using the representative observations of 150 and 250 hours.

Plot the relationship between total overhead costs and physician contact hours billed to patients by creating a scatter graph with a trendline using Excel. The trendline should be a linear trendline. Physician contact hours billed to patients should be the X axis in the graph. The X axis and Y axis titles should be included in the graph.

Must show work for full credit.

Answer rating: 100% (QA)

Answer Part 1 Basic formula for linear function is y a bx Where ... View the full answer