Below are cost and activity data for a particular cost over the last four periods. Your boss has asked you to analyze this cost so that management will have a better understanding of how this cost changes in response to changes in activity.
|
|
Activity |
Cost |
|
Period 1 |
46 |
$483 |
|
Period 2 |
42 |
$465 |
|
Period 3 |
45 |
$477 |
|
Period 4 |
49 |
$500 |
Required:
Using the least squares regression method, estimate the cost formula for this cost.