Reference no: EM132611229

A doctor is trying to determine how overhead costs behave as a function of monthly physician contact hours billed to patients. The historical data are as follows:

Total Overhead Costs           Physician Contact Hours Billed to Patients

$105,000                                      100

125000                                         150

130000                                        200

142000                                       250

148000                                        300

Question 1: Compute the linear cost function relating total overhead costs to physician contact hours using the representative observations of 150 and 250 hours.

Question 2: Plot the relationship between total overhead costs and physician contact hours billed to patients by creating a scatter graph with a trendline using Excel. The trendline should be a linear trendline. Physician contact hours billed to patients should be the X axis in the graph. The X axis and Y axis titles should be included in the graph.