You are applying the scattergraph method and find that the regression line you have drawn passes through a data point with the following coordinates: 1,000 units and $9,600. The regression line passes through the Y axis at the $600 point. Which of the following is the cost formula that represents the slope of this line?
A) Y=$600+$9.00X
B) Y=$600+$9.60X
C) Y=$9,600+$.06X
D) None of these is true.

Question

Quizplus · Accepted Answer

The slope of the line is calculated by taking the difference in cost divided by the difference in units. The line passes through (0, $600) and (1,000, $9,600), so the slope is ($9,600 - $600) / (1,000 - 0) = $9.00 per unit. Therefore, the cost formula is Y = $600 + $9.00X.

You Are Applying the Scattergraph Method and Find That the Regression