Regression equation
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SJaneT
Registered Posts: 2
Hi  can anyone help me in words of one please how I would calculate the values of a & b  I'm practising for MADC exam & this was in AAT practice assessment 1 task 4  here's the question:
The retail shop delivery costs vary in a linear manner and can be expressed using the regression equation y=a+bx where x = number of units delivered.
Delivery costs for 200 and 2000 units are £5000 and £14000 respectively.
Calculate value of a and b
Well  the answer is a = 4000 and b = 5  but how on earth would I work that out please?
Really hoping someone can help explain this to me  thanks
The retail shop delivery costs vary in a linear manner and can be expressed using the regression equation y=a+bx where x = number of units delivered.
Delivery costs for 200 and 2000 units are £5000 and £14000 respectively.
Calculate value of a and b
Well  the answer is a = 4000 and b = 5  but how on earth would I work that out please?
Really hoping someone can help explain this to me  thanks
0
Comments

So if we had a graph b is your gradient and a would be your intercept.
We can calculate b first:
(140005000) / (2000/200) = 9000/1800 = 5
Then from here substitute your value of b into any of the expressions.
5000 = a + 5 * 200
a = 5000  1000
a = 4000
Hope this helpsAAT Level 4, MAAT
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