Given the Following Cost and Activity Observations for Leno Enterprises

question 15

Multiple Choice

Given the following cost and activity observations for Leno Enterprises' utilities, use the high-low method to calculate Leno's variable utilities cost per machine hour. $\begin{array}{lrr} & \text { Cost } & \text { Machine Hours } \\\text { September } & \$ 4,100 & 22,000 \\\text { October } & 3,700 & 18,000 \\\text { November } & 3,900 & 19,000 \\\text { December } & 4,500 & 28,000 \\\hline\end{array}$

• A) $0.08
• B) $4.86
• C) $0.25
• D) $12.50

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Definitions:

Dispersion

A statistical measure that describes the spread of or variation in a set of data values.

Variation

The difference in data set values from the mean, highlighting the dispersion or spread of a set of data points.

Quartile

A quartile is a type of statistical measure that divides a data set into four equal parts, revealing the spread and tendencies of the data.

Chebyshev's Theorem

A statistical rule stating for any real number k greater than one, at least (1-1/k^2) of the distribution's values lie within k standard deviations from the mean.