2. Wilson an automotive technician has been operating a garage in Mombasa for the past two years. A year ago he converted part of his garage to a welding shop making and selling metal doors and windows. He had anticipated that he cost of welding shop would primarily be final but has realized that the welding cost increased with the increase in number of welding job assignment. The costs of welding job assignments are as follows.

Perched	No of welding job assignments	Total cost sh ‘000’
Sept 2008	280	700
Oct   2008	800	860
Nov 2008	1,240	110
Dec   2008	1,000	960
Jan   2009	600	720
Feb   2009	920	910
Mar 2009	860	880
Apr   2009	1,200	260

REQUIRED:

Formulate an equation to estimate the total cost of the welding shop and compute the cost of undertakings 1256 assignment using

2. High-low method
4. Simple linear regression method.                               (6 Marks)

Answer rating: 100% (QA)

To estimate the total cost of the welding shop and compute the cost of undertaking 1256 assignments we can use the highlow method and simple linear re... View the full answer