Term
| Description the use of the Simple Regression Analysis method in analysis costs |
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Definition
| This method can be used to determine the relationships between the dependent variable and independent variable. |
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Term
| What is the other name of this method? |
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Definition
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Term
| what are the two equations involved in the Simple Regression Analysis method? |
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Definition
∑xy = a∑x + b∑x^2
and
∑y = an + b∑x |
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Term
| What is the question that must be answered by the Simple Regression analysis? |
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Definition
| What is the fixed cost (a); and what is the variable cost per unit (b). |
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Term
| What is the principle in solving for a and b? |
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Definition
The values of a and b can be found by simultaneously solving the two formulae:
∑xy = a∑x + b∑x^2
∑y = an + b∑x |
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Term
| List the simple regression solution steps in chronological order. |
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Definition
1. Create the table with headings; n; x,y,xy,x^2
2. substitute symbols in both formulae
3. The only symbols left should be a and b
4. Eliminate a by multiply both a by each other. the outcome make them equal
5. the multiplier must be used for the whole equation for each equation
6. now you should only have b left
7. solve for b
8. then once you have b, you can solve for a |
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