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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
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?
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