Help again!! - Practice paper 1 - Q.1.4 - (D)

vic1989

Hi,

Please can someone explain the below and how the answer is worked out! thanks in advance....

The retail shop's delivery costs vary in linear manner and can be expressed using the regression equation
y = a + bx, where x = number of units delivered

The total delivery costs for 200 units and 2,000 units are £5,000 and £14,000 respectively

Calculate the values of a and b
Value of a: 4,000
Value of B: 5

I cant figure this one out....

mergen

Use High-Low method.

Sineadp

High-Low

2000-200 = 1800
14000-5000=9000

9000/1800=5.00(B)

200*5.00= 1000
5000-1000=4000 (A)

OR

2000*5.00= 10,000
14,000-10,000=4000 (A)

A=4000
B= 5.00