The data below have been taken from the cost records of the Halifax General Hospital. The data relate to the costs of admitting patients at various levels of patient activity:

Required:
1. Use Microsoft Excel to prepare a scattergram using the above data. Plot admitting department costs on the vertical axis and the number of patients admitted on the horizontal axis.
2. Does it appear that admitting department costs are related to the number of patients admitted? Explain.

3. Would you recommend that the company use tonnes mined or direct labour-hours as a base for planning utilities cost?

Transcribed Image Text:

Number of Admitting Department Costs Patients Month Admitted May 3,600 $29,400 $30,400 June 3,800 $27,400 July 2,900 3,200 August $28,000 September 3,300 $28,600 October 2,600 $26,200 November 2,200 $25,600 December 3,500 $29,200