The director of surgery at a local hospital is interested in understanding his u

Question

The director of surgery at a local hospital is interested in understanding his unit's costs. An assistant collected data for the past 36 months on unit cost (labor, supplies, and so on) along with the number of procedures performed in the unit. The assistant analyzed the data using a spreadsheet program, and the following output was generated: The unit is planning to perform an average 19,000 procedures per month for the coming year. Use the regression output to write the surgical unit cost equation. Based on the cost equation, compute the estimated costs for the surgical unit per month for the coming year.

Explanation / Answer

Result:

Cost equation

Surgical unit cost = 1007000+235*procedure

b).

when number of procedure = 19000,

The estimated

Surgical unit cost = 1007000+235*19000

=5472000

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