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 = $24.51 + $1.08X
B) Y = $10.33 + $1.92X
C) Y = $0.00 + $2.32X
D) Y = $15.80 + $1.70X

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 = $24.51 + $1.08X 
B) Y = $10.33 + $1.92X 
C) Y = $0.00 + $2.32X 
D) Y = $15.80 + $1.70X

Quizplus · Accepted Answer

The Answer is D

Your Boss Would Like You to Estimate the Fixed and Variable