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?