Your boss would like you to estimate the fixed and variable components of a particular cost. Actual data for this cost over four recent periods appear below. Using the least-squares regression method, what is the cost formula for this cost?
A)Y = $0.00 + $7.55X
B)Y = $110.44 + $2.70X
C)Y = $103.38 + $3.00X
D)Y = $113.35 + $0.89X

Question

Your boss would like you to estimate the fixed and variable components of a particular cost. Actual data for this cost over four recent periods appear below.  Using the least-squares regression method, what is the cost formula for this cost?
A)Y = $0.00 + $7.55X 
B)Y = $110.44 + $2.70X 
C)Y = $103.38 + $3.00X 
D)Y = $113.35 + $0.89X

Quizplus · Accepted Answer

The Answer is B

Your Boss Would Like You to Estimate the Fixed and Variable