Problem 1: Submit to Dropbox in one Word document together with problem 1-8. Assess decision-making approaches to forecasting results using different techniques. Compare results. Problem 2-21 (Essay) Details Bob Jones owns a catering company that stages banquets and parties for both individuals and companies. The business is seasonal, with heavy demand during the summer months and yearend holidays and light demand at other times. Bob has gathered the following cost information from the past year:

month                         labor hrs                 overhead costs

January                   2500                               55000

February                 2800                                59000

March                     3000                                60000

April                         4200                                64000

May                          4500                                67000

June                        5500                                  71000

July                          6500                                  74000

August                    7500                                   77000

September             7000                                   75000

October                  4500                                    68000

November               3100                                   62000

December                6500                                  73000

Total                        57600                               805000

Bob recently attended a meeting of the local Chamber of Commerce, at which he heard an accounting professor discuss regression analysis and its business applications. After the meeting, Bob enlisted the professor's assistance in preparing a regression analysis of the overhead data he collected. This analysis yielded an estimated fixed cost of $48,000 per month and a variable cost of $4 per labor hour. Why do these estimates differ from estimates using the high-low method?