You are an accountant for a hotel chain and your

You are an accountant for a hotel chain and your boss has asked you to estimate the cost function for one of the firm’s economy lodging properties. Hotels in this segment have only one output: the provision of hotel rooms for overnight stays. The 110-room hotel you will examine is a 2-level wood building with exterior room access, located in Joplin, Missouri. On Canvas, download “Data.xlsx”, a file containing nine years of monthly data for the years 2012-2020. Table 1 lists the variable names and a brief description of each variable. Since these data has been collected over many years, monetary amounts must be adjusted since $1 spent today buys less than $1 spent in 2012. The U.S. Bureau of Labor Statistics estimates consumer prices monthly and Table 2contains their average annual consumer price index (CPI).It is possible to complete this project using Excel or, preferably, a statistical software package (e.g., R).1Required1.What is the cost object?2.What is the cost driver? 4.Plot the relationship between total expenses and rooms rented. Do costs behave as you expect? Are there unusual observations? Using the visual fit, or scatter graph method, what is your estimate of the monthly cost equation?5.Using the high-low method, estimate the hotel’s cost function. What is the monthly cost equation?36.Using regression analysis, estimate the hotel’s cost function (i.e., regress Total Coston to Rentals). What is the monthly cost equation? Assess your model in terms of economic plausibility and goodness of fit.