Scattergraph Method, HighLow Method
Deepa Dalal opened a freestanding radiology clinic. She had anticipated that the costs for the radiological tests would be
primarily fixed, but she found that costs increased with the number of tests performed. Costs for this service over the past
nine months are as follows:
Required:
Based on the information provided, select the correct graph.
Scattergraph:
a
b
Scattergraph of Radiology Tests
d
Scattergraph of Radiology Tests
The correct answer is
Based on an examination of the scattergraph, does there appear to be a linear relationship between the cost of radiology
service and the number of tests?
Compute the cost formula for radiology services using the highlow method. Round the intercept to the nearest
dollar and round the slope to decimal places.
$
Calculate the predicted cost of radiology services for October for tests using the formula found in Requirement
For computations, carry amounts out to two decimal places. Round your final answer to the nearest dollar.
