The regression analysis method of estimating fixed and variable costs uses all available observations to come up with a line that best "fits" the data.

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Regression analysis is a statistical technique used to estimate relationships between variables. In the context of cost estimation, regression analysis is used to estimate fixed and variable costs by analyzing the data on past costs and activity levels. The method uses all available observations to identify a line that best fits the data points.

The Regression Analysis Method of Estimating Fixed and Variable Costs