Q3Cost accountants often estimate overhead based on the level of production. At the XYZ Company, theyhave collected information on overhead expenses and units produced at different plants and want toestimate a regression equation to predict future overhead. The data is available as given in the tablebelow.Develop the regression equation for the cost accountants using Least Square Method.Predict overhead when 50 units are produced.a)b)OverheadUnits1201119911320112484106209127102110447119116101153108178111

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Develop the regression equation for the cost accountants using Least Square Method. Predict overhead when 50 units are produced. Overhead Units 120 111 99 113 201 124 84 106 209 127 102 110 447 119 116 101 153 108 178 111

Develop the regression equation for the cost accountants using Least Square Method. Predict overhead when 50 units are produced. Overhead Units 120 111 99 113 201 124 84 106 209 127 102 110 447 119 116 101 153 108 178 111

Algebra & Trigonometry with Analytic Geometry

13th Edition

ISBN:9781133382119

Author:Swokowski

Publisher:Swokowski

Chapter3: Functions And Graphs

Section3.3: Lines

Problem 76E

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Concept explainers

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.

Question

Q3
Cost accountants often estimate overhead based on the level of production. At the XYZ Company, they
have collected information on overhead expenses and units produced at different plants and want to
estimate a regression equation to predict future overhead. The data is available as given in the table
below.
Develop the regression equation for the cost accountants using Least Square Method.
Predict overhead when 50 units are produced.
a)
b)
Overhead
Units
120
111
99
113
201
124
84
106
209
127
102
110
447
119
116
101
153
108
178
111

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