Estimating a cost function, high-low method

SkyView Vacations offers helicopter service from suburban towns to Gathwick Airport in the United Kingdom.

Each of its 10 helicopters makes between 1,100 and 2,200 round-trips per year. The records indicate that a

helicopter that has made 1,100 round-trips in the year incurs an average operating cost of $385 per round-trip,

and one that has made 2,200 round-trips in the year incurs an average operating cost of $330 per round-trip.

Exercise 4 Estimating a cost function, high-low method Sk'iew 1Watertions offers helicopter service from suburban towns to Gathtvick Airport in the United Kingdom. Each ofits 1 0 helicopters makes between 1.190 and 2,200 roundtrips per year. The reeor'ds indicate that a helicopter that has made 1 ,1DD round-trips in the year incurs an average operating east of $385 per roundhip, and one that has made 2,200 round-trips .in the year incurs an average operating cost of $330 per roundtrip. Requirement: 1'. Being the highlow method, estimate the linear relaljonship y = a+ bx. where y is die total annual operaljng cost of a helicopter and x is the number of roundtrips it makes to Gatwiek Airport during the year.