E6-49B Create a scatter plot for a hospital laboratory (Learning Objective 3)

The manager of the main laboratory facility at MetroFit Center is interested in being able to predict the overhead costs each month for the lab. The manager believes that total overhead varies with the number of lab tests performed but that some costs remain the same each month regardless of the number of lab tests performed.

The lab manager collected the following data for the first seven months of the year.

Month Number of Lab Tests Performed Total Laboratory Overhead Costs January 3,300 $29,000 February 3,100 $28,500 March 3,900 $30,000 April 3,850 $31,000 May 4,100 $26,500 June 2,100 $19,100 July 2,300 $15,900 Requirements 1. Prepare a scatter plot of the lab’s volume (number of lab tests performed) and total laboratory overhead costs.

2. Does the data appear to contain any outliers? Explain.

3. How strong of a relationship is there between the number of lab tests performed and laboratory overhead costs?