# Semi-Variable Costs: Regression Example 2

### Comments

1. says

Dear John,

I have the same doubt as Sashen and the same seems to have been missed by you. 100s would mean we had to move 2 decimal places which you moved just 1. is there a specific reason or it was missed inadvertently.

Thanks
Amit

• says

The cost moves it three decimal places, and the units moves it two decimal places the other way

2. says

please disregard/ delete this post…half of my post was cut off…….the full question is above…thanks

3. says

Hi

Should the cost in 1000s on the 4th line in fact read 85 as opposed to 80? I am using the lecture notes from F5 but the above lecture from F2

Also, the answer in the back of the lecture notes show the answer as

y= 31.430 + 73.21x

Should this in fact read y=31,430 + 73.21x ? as per your answer in the lecture? (allowing for the variance in numbers due to the different value of the 4th line?

many thanks

• says

The fourth line in the answer does read 85 and so your first question is puzzling me.

As regards the 31.430 – yes, indeed it should read 31,430 (and comparison with the high low equation confirms that). It is just a typing error.

Incidentally, if you are studying for Paper F5 then I do hope you read the first paragraph of the chapter. Calculations on regression analysis can no longer be asked – you can only be expected to be aware of the idea. It is only in F2 that calculations can be asked.

• says

I was referring to your answer in the lecture…your 4th line reads as 80 in the lecture.

Yes, I am aware of that…I was going through the example to gain a broad understanding of regression

Many thanks for the quick reply…much appreciated

4. says

The cost moves it three decimal places, and the units moves it two decimal places the other way

5. says

Hi Sir

I would like to know in the final Equation:
y = 32857 + 67.86x

I understand that 32.857 the decimal moved to the right because there was 3 zeros in the cost figure.

I would like to know why did 6.7857 only moved one decimal place ?

• says

I understand but I would assume that hundreds would move two decimal places since 100 has two zeros ?