The Phone Bill for a Company Consists of Both Fixed

question 270

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. $$\begin{array} { | l | r | r | } \hline & \text { Minutes } & \text { Total Bill } \\\hline \text { January } & 460 & \$ 3000 \\\hline \text { February } & 200 & \$ 2675 \\\hline \text { March } & 170 & \$ 2660 \\\hline \text { April } & 310 & \$ 2825 \\\hline\end{array}$$ 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:

F Distribution

A continuous probability distribution that arises in the testing of whether two population variances are equal and in the analysis of variance (ANOVA).

Degrees of Freedom

The number of independent values or quantities that can vary in an analysis without violating any constraints, influencing the flexibility of statistical calculations.

F Statistic

A statistical measure used to analyze the variance among group means in a sample, often used in the context of ANOVA.

ANOVA Table

A tabular representation used in analysis of variance to summarize the sources of variation between groups and within groups.