Using the High-Low Method and the Information Below, Compute the Monthly

question 37

Multiple Choice

Using the high-low method and the information below, compute the monthly total fixed costs for SKP Corporation. $\begin{array}{|l|c|r|}\hline \text { Month } & \begin{array}{c}\text { Telephone } \\\text { Hours Used }\end{array} & \begin{array}{c}\text { Telephone } \\\text { Expenses }\end{array} \\\hline \text { April } & 100 & \$ 4,500 \\\text { May } & 110 & 4,800 \\\text { June } & 150 & 5,400 \\\hline\end{array}$

• A) $1,800
• B) $2,700
• C) $3,640
• D) $4,500

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Definitions:

Population Proportion

A measure that describes the percentage of a specific characteristic in a population.

Z-test

An analysis technique that evaluates the difference in means between two populations with known variances and substantial sample sizes.

Nominal Data

Data categorized without a natural order or ranking, distinguished merely by name.

Binomial Experiment

A statistical experiment that adheres to the following criteria: fixed number of trials, only two possible outcomes, constant probability of success, and independence between trials.