Question: Remember to use the high-low method to predict labor cost for 18,000 prescriptions. Should all ten years of data be used to predict labor cost?

Remember to use the high-low method to predict labor cost for 18,000 prescriptions.

  1. Should all ten years of data be used to predict labor cost? Why or why not?
  2. Should the last two years of data be used--that is, time Dr. Perez has been running the pharmacy? Why or why not?
  3. What is your predicted labor cost at 18,000 scripts? How confident do you feel? What did you find difficult?

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