DATA INPUT
Month Flights Airport Costs
January 1,200 20,000$
February 1,000 19,000
March 900 18,000
April 1,400 19,000
May 800 17,000
June 1,100 20,000
July 1,500 21,000
August 900 17,000
September 1,200 21,000
October 1,000 19,000
November 1,400 24,000
December 1,100 18,000
SOLUTION
2. Least- squares regression:
Fixed- and variable-cost components:*
3. Least-squares regression equation for the airport’s costs:
4. Cost prediction: