Grawburg Inc

question 34

Essay

Grawburg Inc.maintains a call center to take orders,answer questions,and handle complaints.The costs of the call center for a number of recent months are listed below:
Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken.
Required:
Estimate the variable cost per call and fixed cost per month using the least-squares regression method.

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Definitions:

Mean

A statistical measure representing the average or central value of a set of numbers, calculated by adding all the values and dividing by the count of the values.

Z-score

A statistical measure representing the number of standard deviations a data point is from the mean of its distribution.

Symmetrical Area

An area in a statistical distribution where two portions on either side of the center are mirror images of each other.

Discrete Probability Distributions

Probability distributions that deal with discrete random variables, quantifying the probabilities of different outcomes.