The manager of the main laboratory facility at Elmhurst Health 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:

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 a relationship is there between the number of lab tests performed and laboratory overhead costs?

Transcribed Image Text:

Number of Lab Total Laboratory Tests Overhead Costs Month January. Performed 3,000 2,850 3,400 3,700 3,900 1,900 $21,900 $20,600 February March... $28,900 April ......... $31,000 $28,000 May.. June $20,200 July. . $14,000 2,050