Linear Regression "Least Squares Method"
sammyd22
Registered Posts: 207 Dedicated contributor ๐ฆ
Anyone studying Cima with any knowledge they can share on the above.
Im competent with costing but this is a bit tricky.
Any tips?
Im competent with costing but this is a bit tricky.
Any tips?
0
Comments
-
thought that was covered in P2??? ....i have some details on it from my college days...0
-
thought that was covered in P2??? ....i have some details on it from my college days...
Under the new syllabus they have dropped it from P2 to P1. Any help is appreciated.
They are also assessing investment appraisal in detail on P1 and the lecturer has said that this is also new to P1.0 -
must have been asleep in my lecture, ill check ym BPP books when i get home.
yeah NPV and IRR are in P1 now0 -
From what I can remember:
P1 - Linear Regression (Forecasting ?)
P2 - Linear Programming (Limiting Factors)
When I did P2 there was a longer question asking to use Graphical Linear Programming with a limiting factor style scenario (so maybe uselful to get to grips with this), but I never came across any question on P1 using Linear regression, only in college.
Good luck, I don't think it is as bad as it looks - the text books just look awful from first glance.0 -
Linear Regression "Least Squares Method"
Linear Regression "Least Squares Method"
This is an AAT topic in PEV and MAC and builds on the Reports and Returns unit
The formula y = a + bx represents a straight line. a is the fixed part, b is the variable part per unit and x is the number of units.
So the same method that applies to semi-variable costs also applies to forecasting salesSandy
sandy@sandyhood.com
www.sandyhood.com0 -
You need to be able to derive a and b on the CIMA unit (but not on AAT)
Each exam has a set of formulae to help
Would you like to work through an example to try to help?
email me if you think I can help (my PM is virtually always full!!)Sandy
sandy@sandyhood.com
www.sandyhood.com0 -
You need to be able to derive a and b on the CIMA unit (but not on AAT)
Each exam has a set of formulae to help
Would you like to work through an example to try to help?
email me if you think I can help (my PM is virtually always full!!)
Im familiar with the linear regression formula of Y= a + bx, where Y = total costs, A = Fixed Costs & b = Variable element per unit and X = Qty. This is not a problem for me as i covered this in AAT.
The problem is with the Least Square method. Ill get a practice question from home and post it on.
Thanks0 -
hope the below helps more than confuses
http://www.itl.nist.gov/div898/handbook/pmd/section1/pmd141.htm
http://www.itl.nist.gov/div898/handbook/pmd/section4/pmd431.htm0 -
hope the below helps more than confuses
http://www.itl.nist.gov/div898/handbook/pmd/section1/pmd141.htm
http://www.itl.nist.gov/div898/handbook/pmd/section4/pmd431.htm
thanks.
I doesnt seem to be as bad as first thought. I missed the lecture last week and had to look it up myself. The scientific formula had me confused but i should be ok.
Thanks All0 -
Steven,
Regression is a topic covered in a lot of detail in any A level Statistics or Maths textbook discussing statistics. Work through a few examples and it should be easy. From memory, you would need to draw the graph Y=A + bx and I think there is another formula to follow to work out the regression.0 -
JayneHogan wrote: ยปSteven,
Regression is a topic covered in a lot of detail in any A level Statistics or Maths textbook discussing statistics. Work through a few examples and it should be easy. From memory, you would need to draw the graph Y=A + bx and I think there is another formula to follow to work out the regression.
Thanks Jayne0 -
Sample from my BPP text:
"Regression Analysis (also know as "method of least squares" ) find the Straight line which minimises the squares of the vertical distances from the original data to the regression line, i.e the line of best fit"
used with the formula (given in exam) you should be able to work out a and b for the straight line expression.0 -
Sample from my BPP text:
"Regression Analysis (also know as "method of least squares" ) find the Straight line which minimises the squares of the vertical distances from the original data to the regression line, i.e the line of best fit"
used with the formula (given in exam) you should be able to work out a and b for the straight line expression.
Thanks for looking Slackda!0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 318 NEW! Qualifications 2022
- 161 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership