Home For AAT student members AQ 2016 Professional Diploma in Accounting Management Accounting: Decisions and Control

Regression

Hi, I hope everyone is ok .
I am struggling to understand how to approach to this type of question, I hope someone can help.

Do you know how to calculate component a and b on the below when y is the price and x is the years number.

In year 4 the price was 68 £ and in year 8 the price was 76£.

y=a+bx

Thanks in advance.

Comments

  • PeterCPeterC Registered, Tutor Posts: 218
    In Year 4:
    £68 = a + 4b (1)

    In Year 8:
    £76 = a + 8b (2)

    If you subtract row (2) from row (1), you get:

    £8 = 4b

    I imagine you can work out the rest
Sign In or Register to comment.