Odessa, Inc., manufactures one model of computer desk. Thefollowing data are available regarding units shipped and totalshipping costs:
| Month | Number of Units Shipped | Total Shipping Cost |
| January | 40 | $2,950 |
| February | 75 | 3,650 |
| March | 25 | 2,250 |
| April | 35 | 1,850 |
| May | 30 | 2,300 |
| June | 55 | 3,250 |
| July | 50 | 3,000 |
|
Required:
1. Prepare a scattergraph of Odessa’s shipping cost anddraw the line you believe best fits the data.
3. Using the high-low method, calculate Odessa’stotal fixed shipping costs and variable shipping cost perunit.
4. Perform a least-squares regression analysis onOdessa’s data. (Use Microsoft Excel or a statisticalpackage to find the coefficients using least-squares regression.Round your answers to 2 decimalplaces.)
5. Using the regression output, create a linearequation (y = a + bx ) for estimating Odessa’sshipping costs.
