Q1) Westminster Company has had following experience over past five quarters:
|
Units produced
|
Electricity cost ($)
|
|
27,000
|
101,000
|
|
32,000
|
120,000
|
|
31,000
|
116,000
|
|
20,000
|
84,000
|
|
22,000
|
90,000
|
a) Using high-low method, find out the equation for electricity cost (Y) as function of units produced (X). Suppose a linear function.
b) Using your equation, predict electricity cost at the volume of 29,000 units produced.