• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

June 2025 ACCA Exams

How was your exam? Comments & Instant poll >>

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Regression analysis

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Regression analysis

  • This topic has 5 replies, 2 voices, and was last updated 3 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • December 18, 2021 at 6:51 pm #644528
    John1998m
    Participant
    • Topics: 73
    • Replies: 40
    • ☆☆

    The formula sheet of paper PM has been updated and now it includes Regression analysis formulas. True?

    I have not seen your lecture yet but please state that there are formulas for regression analysis but no formula for time series analysis. True?

    Thank you for your time :))

    December 19, 2021 at 6:34 am #644535
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54679
    • ☆☆☆☆☆

    True for both 🙂

    December 19, 2021 at 1:02 pm #644546
    John1998m
    Participant
    • Topics: 73
    • Replies: 40
    • ☆☆

    I have seen your lecture on regression analysis but I could not understand it completely.

    What I understand is that regression analysis is used to identify a straight line that shows a linear relationship between two variables.

    Is it true that these two variables are total cost (y) and the number of units (x)?

    It shows the relationship between two variables that if one variable (number of units (x)) is increasing then the other variable (total costs (y)) will also be increasing. It simply means that with more units produced there will be more total costs of production.

    To show this relationship we need to calculate the fixed cost and variable cost using regression analysis formula

    Y = a + bx

    We could be asked regression analysis calculations only in sections A and B in paper PM?

    December 19, 2021 at 2:58 pm #644550
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54679
    • ☆☆☆☆☆

    Your understanding is correct except for the fact that it can be used to express the relationship of any two variables – it doesn’t have to be the total cost and the number of units (although that is the most likely relationship to exist in Paper PM).

    It can be asked in any section of the exam.

    December 19, 2021 at 3:38 pm #644552
    John1998m
    Participant
    • Topics: 73
    • Replies: 40
    • ☆☆

    Thank you so much. 🙂
    Please say about this too.

    Correlation Coefficient:
    It measures how linear the relationship is between two variables such as whether it is perfectly positive linear correlation or not using this formula.

    r = (n(Exy) – Ex Ey / squareroot n(Ex^2 – (Ex)^2)) x (nEy^2 – (Ey)^2)

    + 1 = The points are exactly on a straight-line going upwards
    1 = The points are closely on a straight-line going upwards
    – 1 = The points are exactly on a straight-line going downwards
    0 = No correlation at all (straight-line is not possible to draw)

    The correlation coefficient is used only to see whether the straight-line which is passing through the points are perfectly or not perfectly positive or negative.

    Is it correct?

    Is it also correct that linear relationship refers to the straight-line which passes through points (or variable points) but the linear relationship refers to only two variables only. I don’t understand why is it important though?

    December 20, 2021 at 6:56 am #644570
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54679
    • ☆☆☆☆☆

    The correlation coefficient is used to see how near (or how far) away the points are from being in a straight line.

    In practice several variables can affect each other – for instance being ill can be cause by lots of different things. Regression only looks at the relationship between two variables.

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • mm3677 on IAS 16 Accounting for a revaluation – CIMA F1 Financial Reporting
  • Anastesia123 on MA Chapter 1 Questions Accounting for Management
  • John Moffat on MA Chapter 26 Questions Variance Analysis
  • acowtant on Changes in group structure – examples – ACCA SBR lectures
  • Samantha96 on The Statement of Financial Position and Income Statement (part a) – ACCA Financial Accounting (FA) lectures

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in