Company A produces product. The information on the number of units produced and mixed costs is provided in the table. Period Number of units produced Maintenance costs, Eur 1 quarter 30 1350 2 quarter 44 1960 3 quarter 42 1870 4 quarter 37 1720 Using least-squares regression, identify the fixed costs incurred (round to nearest euro, for example 123.1234 Eur round to 123 Eur or 123.5678 Eur to 124 Eur)
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.
Company A produces product. The information on the number of units produced and mixed costs is provided in the table.
| Period | Number of units produced | Maintenance costs, Eur |
| 1 quarter | 30 | 1350 |
| 2 quarter | 44 | 1960 |
| 3 quarter | 42 | 1870 |
| 4 quarter | 37 | 1720 |
Using least-squares regression, identify the fixed costs incurred (round to nearest euro, for example 123.1234 Eur round to 123 Eur or 123.5678 Eur to 124 Eur)
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