Using the least-squares regression method, estimate the variable cost per ton and the fixed cost per…

CapeAir flies a medium-sized passenger jet on a route between Washington, D.C., and Cape Cod. The manager of the airline would like to estimate the relationship between  the plane”s payload (i.e., total weight of passengers and cargo) and total fuel costs. On five recent flights, the payload varied between 22 tons and 35 tons.

 

Payload

Fuel

 

(tons)

Cost

Flight 1

35

$780

Flight 2

26

$720

Flight 3

33

$765

Flight 4

28

$735

Flight 5

22

$700

Required:

Using the least-squares regression method, estimate the variable cost per ton and the  fixed cost per flight. (Round off the variable cost per ton to the nearest cent and the fixed cost per flight to the nearest dollar.)