High-Low Method, Scatterplot, Regression

Weber Valley Regional Hospital has collected data on all of its activities for the past 16 months. Data for cardiac nursing care follow:

Y

CostX

Hours of Nursing CareMay Year 1$59,6001,400June Year 157,1501,350July Year 161,1101,460August Year 165,8001,600September Year 169,5001,700October Year 164,2501,550November Year 152,0001,200December Year 166,0001,600January Year 283,0001,800February Year 266,5501,330March Year 279,5001,700April Year 276,0001,600May Year 268,5001,400June Year 273,1501,550July Year 273,1751,505August Year 266,1501,290

Required:

In the computations below, use intercepts rounded to the nearest whole number and use X variable coefficients rounded to 2 decimal places.

1.Using the high-low method, calculate the variable rate per hour and the fixed cost for the nursing care activity. Enter negative answers with a minus sign.

Y=$+$X

2.Run a regression on the data, using hours of nursing care as the independent variable. Predict cost for the cardiac nursing care for September Year 2 if 1,400 hours of nursing care are forecast. If required, round your answer to the nearest dollar.

Y = $

3.Upon looking into the events that happened at the end of Year 1, you find that the cardiology ward bought a cardiac-monitoring machine for the nursing station. Administrators also decided to add a new supervisory position for the evening shift. Monthly depreciation on the monitor and the salary of the new supervisor together total $10,000. Now, run two regression equations, one for the observations from Year 1 and the second using only the observations for the eight months in Year 2. What is your predicted cost of the cardiac nursing care activity for September Year 2 if 1,400 hours of nursing care are forecast? When required, round your answer to two decimal places.

Y=$