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Problem - The number of blood tests performed and the related costs over the last nine months in Brentline Hospital are given below:
Month
Blood Tests Performed
Blood Test Costs
January
3,580
$51,406
February
4,100
$57,150
March
2,890
$42,030
April
2,192
$33,070
May
2,340
$35,552
June
1,500
$24,650
July
2,050
$31,011
August
2,940
$42,452
September
3,350
$48,341
Required -
1. Using the high-low method, estimate the cost formula for blood tests.
2. Using the cost formula you derived above, what blood test costs would you expect to be incurred during a month in which 2,310 blood tests are performed?
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