Below Are Cost and Activity Data for a Particular Cost

question 32

Essay

Below are cost and activity data for a particular cost over the last four periods.Your boss has asked you to analyze this cost so that management will have a better understanding of how this cost changes in response to changes in activity.
$\begin{array}{|l|r|r|}\hline & \text { Activity } & \text { Cost } \\\hline \text { Period 1 } & 44 & 277 \\\hline \text { Period 2 } & 42 & 265 \\\hline \text { Period 3 } & 48 & 284 \\\hline \text { Period 4 } & 49 & 284 \\\hline\end{array}$
Required:
Using the least-squares regression method and the equations for a and b,estimate the cost formula for this cost.

---

Definitions:

Probability Distribution

An equation in mathematics that predicts the probabilities of distinct possible occurrences during an experiment.

Daily Sales

The total quantity or amount of products sold or transactions made in one day.

Registered Voters

Individuals who have completed the necessary procedures to be eligible to vote in an election.

Random Sample

A subset of individuals chosen from a larger set, where each individual is selected randomly and entirely by chance, ensuring that every subset of the population has an equal probability of being chosen.