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: Month Radiology Tests Total Cost January 2,800 $133,500 February 2,600 135,060 March 3,100 175,000 April 3,500 170,600 May 3,400 176,900 June 3,700 186,600 July 3,840 174,450 August 4,100 195,510 September 3,450 185,300 Required: 1. Based on the information provided, select the correct graph. Scattergraph: a. b. a. C. $250,000 $200,000 Scattergraph of Radiology Tests $150,000 $100,000 $50,000 b. $250,000 $200,000 $150,000 $100,000 $50,000 Scattergraph of Radiology Tests $0 $0 0 1,000 2,000 3,000 4,000 5,000 0 1,000 2,000 3,000 4,000 5,000 Number of Tests Number of Tests $250,000 $200,000 $150,000 $100,000 $50.000 d. Scattergraph of Radiology Tests $250,000 $200,000 $150,000 $100,000 $50.000 Scattergraph of Radiology Tests Cost C. $250,000 $200,000 $150,000 $100,000 $50,000 $0 d. Scattergraph of Radiology Tests Cost $250,000 $200,000 $150,000 $100,000 $50,000 Scattergraph of Radiology Tests $0 0 1,000 2,000 3,000 Number of Tests 4,000 5,000 0 1,000 2,000 3,000 Number of Tests 4,000 5,000 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? 2. 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 3. 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