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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Regression Equation
how did you know that 32857 is the fixed cost and 67086 is the variable cost in the lecture
y=32857+67.86x.
thank you
Think about it, for different values of x it is only the 67.86x that changes, so that it the variable cost. The 32857 is the same whatever the value of x and so that is the fixed cost.
a on the formula sheet is always the fixed cost, and b on the formula sheet is always the variable cost.
The equation is always y = a + bx
thank you sir, i got it
Great 🙂