Reference no: EM132652377

Question - The administrator of LABAID Hospital would like a cost formula linking the administrative costs involved in admitting patients to the number of patients admitted during a month. The Admitting Department's costs and the number of patients admitted during the immediately preceding eight months are given in the following table:

Month Number of Patient Admitted (X) Admitting Department Cost (Y)

January 3 Tk.1,800

February 6 Tk.2,300

March 4 Tk.1,700

April 5 Tk.2,000

May 7 Tk.2,300

June 8 Tk.1,700

July 2 Tk.1,200

Required -

i. Use the regression analysis method to estimate the fixed and variable components of admitting costs.

ii. Express the fixed and variable components of admitting costs as a cost formula in the form Y = a + bX.