A cost accountant is attempting to find a linear model that describes the cost of producing a firms product. She has the following data: Units Costs 5000 $110,000 $135,000 6000 7000 $155,000 8000 $180,000 Units Costs 5000 $110,000 6000 $135,000 7000 $155,000 8000 $180,000 O A. C(x) = 18x OB. C(x) = 150000 O C. C(x) = 18x + 28000 O D. C(x) = 28x + 18000 Find the linear model by using linear regression analysis which best describes cost as a function of the number of units produced.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
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