(Solved): Professor John Morton has just been appointed chairperson of the Finance Department at Westland Uni ...

Professor John Morton has just been appointed chairperson of the Finance Department at Westland University. In reviewing the department's cost records, Professor Morton found the folfowing total cost associated with Finance 101 over the last five terms: Professor Morton knows there are some variable eosts, such as amounts paid to graduate assistants, associated with the course. He would like to have the varlable and fixed costs separated for plarining purposes: Required: - Using the least-squares regression method, estimate the variable cost per section and the fotal fixed costper term for Finance 101 $b$ Express these estimates in the form $Y=a+bX$ ta. Assume because of the small number of sections offered during the Winter Term this year. Professor Morton will have to ofter nine ections of Finance 101 during the Fall Term. Compute the expected total cost for Finance 101 b. Can you see any problem with using the cost formula from part (2) to derive this total cost figure?