An accountant believes that in month 7 the machine hour

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Determine if there is a relationship between machine hours and utility costs using the following information.

Month

Machine Hours

Utility Costs

1

2000

900

2

2800

1420

3

3200

1200

4

3000

1200

5

2200

1300

6

2400

1000

A. Using either the high-low method or regression analysis, determine the equation for a line.

B. An accountant believes that in month 7 the machine hour volume will be 3600 hours. Determine the expected utility cost.

C. Do you think machine hours is a good predictor of utility costs? Why?

Reference no: EM13576169

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