Sherri’s Tan-O-Rama is a local tanning salon. The following information reflects its number of appointments and total costs for the first half of the year

1) Use least-squares regression to estimate cost behavior based on this data.

a. The number of appointments explains about _________ of the Total Cost. Fill in the blank.

b. What is your formula for predicting Total Cost?

c. What would Total Cost be if the company had 400 appointments in July?

2). Which estimate of Total Cost in July would you rely on if you were a manager? Why that estimate and not the other two estimates?

Transcribed Image Text:

Number of Appointments 250 300 500 225 150 175 Total Cost $5,000 6,000 6,200 5,300 5,450 5,230 Month January February March April May June Number of Appointments 250 300 500 225 150 175 Total Cost $5,000 6,000 6,200 5,300 5,450 5,230 Month January February March April May June

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