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.
Activity | Cost | |||||
Period 1 | 41 | $ | 405 | |||
Period 2 | 40 | $ | 394 | |||
Period 3 | 37 | $ | 376 | |||
Period 4 | 42 | $ | 420 | |||
Using the least-squares regression method, what is the cost formula for this cost?
Multiple Choice
Y = $56.56 + $8.70X
Y = $0.00 + $15.51X
Y = $64.46 + $8.36X
Y = $69.89 + $5.60X
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