Regression equation
SJaneT
AAT Student, AATQB 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
ACCA in progress
F4 Passed Aug 2020
F5 Passed Dec 2020
F6 Passed Sep 2020
F7 Passed June 2021
F8  Passed Sep 2021
F9  Passed June 2021
SBL 
SBR  Passed Mar 22
ATX  Passed Dec 21
APM  Passed June 221
Categories
 All Categories
 1.2K Books to buy and sell
 2.3K General discussion
 18.9K For AAT students
 234 NEW! Qualifications 2022
 133 General Qualifications 2022 discussion
 7 AAT Level 2 Certificate in Accounting
 31 AAT Level 3 Diploma in Accounting
 55 AAT Level 4 Diploma in Professional Accounting
 8.9K For accounting professionals
 23 coronavirus (Covid19)
 272 VAT
 91 Software
 272 Tax
 135 Bookkeeping
 7.3K General accounting discussion
 201 AAT member discussion (AATQB, MAAT, FMAAT and AAT Licensed Accountants and Bookkeepers)
 3.8K For everyone
 39 AAT news and announcements
 352 Feedback for AAT
 2.8K Chat and offtopic discussion
 586 Job postings
 17 Who can benefit from AAT?
 36 Where can AAT take me?
 44 Getting started with AAT
 26 Finding an AAT training provider
 47 Distance learning and other ways to study AAT
 25 Apprenticeships
 65 AAT membership