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Labrie Hospital wants to analyze its revenue per patient day. A "patient day" is one patient staying for one day. The following information has been provided to you:
Period
Revenues
Patient Days
1
20,325
768
2
20,580
703
3
19,829
699
4
19,917
790
5
20,035
702
6
16,705
558
7
17,805
641
8
21,358
802
9
18,895
634
10
18,466
565
Required:
1. Determine the revenue formula using linear regression.
2. What can you conclude about the strength of fit between revenues and patient days?
3. What is the estimated revenue if 600 patient days are used?
4. What is the estimated revenue if 700 patient days are used?
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