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Wilson an automotive technician has been operating a garage in Mombasa for the past two years. A year ago he converted part of his garage to a welding shop making and selling metal doors and windows. He had anticipated that he cost of welding shop would primarily be final but has realized that the welding cost increased with the increase in number of welding job assignment. The costs of welding job assignments are as follows. Perched No of welding job assignments Total cost sh ‘000’ Sept 2008 280 700 Oct 2008 800 860 Nov 2008 1,240 110 Dec 2008 1,000 960 Jan 2009 600 720 Feb 2009 920 910 Mar 2009 860 880 Apr 2009 1,200 260 REQUIRED: Formulate an equation to estimate the total cost of the welding shop and compute the cost of undertakings 1256 assignment using i) High-low method ii) Simple linear regression method.
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