Scattergraph Method, High$-$Low Method

Deepa Dalal opened a free$-$standing radiology clinic. She had anticipated that the costs for the radiological tests would be

primarily fixed, but she found that costs increased with the number of tests performed. Costs for this service over the past

nine months are as follows:

Required:

Based on the information provided, select the correct graph.

Scattergraph:

a$.$

b$.$

Scattergraph of Radiology Tests

d$.$

Scattergraph of Radiology Tests

The correct answer is

Based on an examination of the scattergraph, does there appear to be a linear relationship between the cost of radiology

service and the number of tests?

Compute the cost formula for radiology services using the high$-$low method. Round the intercept to the nearest

dollar and round the slope to $2$ decimal places.

$Y=$$$,+,x$

Calculate the predicted cost of radiology services for October for $3,500$ tests using the formula found in Requirement $2.$

For computations, carry amounts out to two decimal places. Round your final answer to the nearest dollar.

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