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Sir Unlike the high low method regression analysis uses all available past data
To calculate the line of best fitAnd
Like the high low method regression analysis is used to predict a linear relationship between two variablesAm I correct sir ?
Yes, although you are not working it quite correctly.
The high low method assumes that their is a precise linear relationship – it is unlikely to be exactly linear in real life.
Because things don’t go perfectly in real life!!
Some things do. For example if you use twice as much electricity in a month then you would expect the cost to be exactly twice as much.
However, if you make twice as many units in a month then the total cost of production will probably be close to twice as much but probably not exactly twice as much – things go wrong 🙂
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