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John Moffat says

Thank you

David says

Where did u get N=7 in Example 2???

John Moffat says

I assume that you had the example in front of you (in the free Course Notes that are needed to watch the lectures).

In which case you will se that there are 7 sets of observations – January through to July. N is the number of sets of observations.

SanjeSashana says

Hello, Mr. Moffat

I am trying to understand as to how you came across the way to get back the variable cost (b) and the fixed cost (a) back into its actual cost, as in if we never did the substituting to make the arithmetic quicker. Just to see if I was right, is this because if I transposed the formulae “y = a + bx” to suit ‘a’ and ‘b’, as in: a= y – b/x and b = y/x – a,

– in a’s case you would only have to multiply by 1000 because the ‘y’ costs in the formulae were not being divided by the ‘x’ units.

-and in b’s case you would have to multiply by 1000 (y costs) and also divide by 100 (x units) because ‘y’ was being divided by ‘x’. ?

John Moffat says

That is correct

SanjeSashana says

Ohh, thank you Mr. Moffat :). I really appreciate what you are doing for us.