Month: Radiology Tests: Total Costs:
January 2,800 $133,500
February 2,600 $135,060
March 3,100 $175,000
April 3,500 $170,600
May 3,400 $176,900
June 3,700 $186,600
July 3,840 $174,450
August 4,100 $195,510
September 3,450 $15,300
1. Compute the cost formula for radiology services using themethod of least square
2. Using the formula computed in requirement 1, what is thepredicted cost of radiology services for October for 3,500appointments? (Round the answer to the nearest dollar)
3. What does the coefficient of determination tell you about thecost formula computed in requirement 1? What are the t statisticsfor the number of tests and the intercept term? What do thesestatistics tell you about the choice of number of tests as theindependent variable and the probability that there are fixedcosts?
