Medium-sized passenger jet on a route

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Reference no: EM13941842

CapeAir flies a medium-sized passenger jet on a route between Washington, D.C., and Cape Cod. The manager of the airline would like to estimate the relationship between the plane's payload (i.e., total weight of passengers and cargo) and total fuel costs. On five recent flights, the payload varied between 22 tons and 35 tons.
Payload
Fuel
(tons)
Cost
Flight 1
35
$780
Flight 2
26
$720
Flight 3
33
$765
Flight 4
28
$735
Flight 5
22
$700
Required:
Using the least-squares regression method, estimate the variable cost per ton and the fixed cost per flight. (Round off the variable cost per ton to the nearest cent and the fixed cost per flight to the nearest dollar.)

Reference no: EM13941842

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