The manager of the main laboratory facility at CenterHealth Center is interested in being able to predict

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The manager of the main laboratory facility at CenterHealth Center is interested in being able to predict the overhead costs each month for the lab. The manager believes that total overhead varies with the number of lab tests performed but that some costs remain the same each month regardless of the number of lab tests performed.
The lab manager collected the following data for the first seven months of the year:

The manager of the main laboratory facility at CenterHealth Center

Requirements
1. Prepare a scatter plot of the lab€™s volume (number of lab tests performed) and total laboratory overhead costs.
2. Does the data appear to contain any outliers? Explain.
3. How strong of a relationship is there between the number of lab tests performed and laboratory overheadcosts?

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Managerial Accounting

ISBN: 978-0133428377

4th edition

Authors: Karen W. Braun, Wendy M. Tietz

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