The Phone Bill for a Company Consists of Both Fixed

question 48

Multiple Choice

The phone bill for a company consists of both fixed and variable costs.Refer to the four-month data below and apply the high-low method to answer the question. $$\begin{array} { | l | r | r | } \hline & \text { Minutes } & \text { Total Bill } \\\hline \text { Tanuary } & 460 & \$ 3000 \\\hline \text { February } & 200 & \$ 2675 \\\hline \text { March } & 170 & \$ 2660 \\\hline \text { April } & 310 & \$ 2825 \\\hline\end{array}$$ What is the variable cost per minute? (Round your answer to the nearest cent.)

• A)$1.17
• B)$6.52
• C)$0.85
• D)$0.11

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Definitions:

Sample Size

This term refers to the number of observations or replicates used in a statistical analysis.

Central Limit Theorem

A statistical theory stating that the distribution of sample means approximates a normal distribution as the sample size becomes large, regardless of the population's distribution.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, essential in estimating the sampling variability.

Sample Mean

The average value of a sample, used as an estimate of the population mean.