Question: Problem 1 : Tyler s Gelato Inc. ( Forecasting Costs ) Tyler s Gelato Inc. is a restaurant that provides catering services. Tyler, the owner

Problem 1: Tylers Gelato Inc. (Forecasting Costs) Tylers Gelato Inc. is a restaurant that provides catering services. Tyler, the owner of Tylers Gelato Inc., is trying to forecast operating costs for the next month. Tyler estimates that the company will receive 100 orders next month. To estimate operating costs, Tyler collected operating costs for the past 18 months Month Operating Costs # of Orders 1 $1,820612 $2,220813 $2,250854 $1,956695 $2,370856 $1,840627 $2,546938 $1,628589 $2,3009810 $2,4448111 $2,0807912 $2,6128813 $2,6809614 $1,9207515 $2,1808316 $2,2609117 $2,3109518 $2,18089(1) Using High-Low method, a) What are the estimated monthly fixed costs and the variable cost per order? (2 points) b) What is the estimated operating cost for 100 orders if Tyler uses the High-Low method? (1 point)(2) Using simple regression, a) What are the estimated monthly fixed costs and the variable cost per order? (2 points) b) What percentage of the variation in costs is explained by the regression equation? (0.5 points) c) What is the estimated operating cost for 100 orders if Tyler uses regression analysis? (0.5 points)

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