# Practice Assessment 2 Q1.5 (b)

mcd
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Production costs for product are semi variable. Company uses regression formula y=a + bx to forecast costs where:

y=total costs

x=units

a=fixed element

b=variable element

Data has been gathered on previous costs:

Units Total Cost

(x) (y)

8000 52000

12000 72000

13500 79500

Using the data provided and the regression formula calculate the values of a and b?

Can anyone help on this can't seem to arrive at the correct answer?

Thanks

Mike

y=total costs

x=units

a=fixed element

b=variable element

Data has been gathered on previous costs:

Units Total Cost

(x) (y)

8000 52000

12000 72000

13500 79500

Using the data provided and the regression formula calculate the values of a and b?

Can anyone help on this can't seem to arrive at the correct answer?

Thanks

Mike

0

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