[BetsyLee123]

I see, thank you sir 🙂

[BetsyLee123]

Sir do you mean we could have even calculated the same using Profit Figure rather than contribution i.e by incorporating fixed cost?

[BetsyLee123]

Thank you sir 🙂

[BetsyLee123]

Yes sir i have watched your Lecturers, sir in case it was given that there is linear relationship between two variables, rather than a perfect linear relationship.
Would that statement be correct?

And sir is this the very reason as to why we calculate the Coefficient of correlation and determination?
To test as how much can we rely upon the estimate/forecast as there is no perfect linear relationship between the variables?

[BetsyLee123]

Noted sir. Thank you very much.

[BetsyLee123]

Thank you Sir and yes I have watched your videos.

Sir for 1st Point, in Study Text it has been mentioned as disadvantage that “it assumes that the activity is the only factor affecting the cost).

So doesn’t that mean that we are assuming that only factor impacting the dependent variable is the Independent variable.

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