An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of production volumes and total cost data for a manufacturing operation. Production Volume (units) Total Cost ($) 400 3,900 450 5,000 550 5,300 600 5,800 700 6,500 750 7,000   (a) Use these data to develop an estimated regression equation that could be used to predict the total cost for a given production volume. (Round your numerical values to two decimal places.) ŷ =      (b) What is the variable cost (in dollars) per unit produced? $ _____   (c) Compute the coefficient of determination. (Round your answer to three decimal places.) =_______ What percentage of the variation in total cost can be explained by production volume? (Round your answer to one decimal place.)  ____%   (d) The company's production schedule shows 500 units must be produced next month. Predict the total cost (in dollars) for this operation. (Round your answer to the nearest cent.) $ _____

Q: Find the required linear model using least-squares regression. The table below gives the total sales…

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Q: Production Volume (units) Total Cost ($) 400 4,000 450 5,000 550 5,400 600 5,900 700 6,400 750 7,000…

A: X Y X-Mx Y-My (X - Mx)2 (Y - My)2  (X - Mx)(Y - My) 400450550600700750 400050005400590064007000…

Q: An important application of regression analysis in accounting is in the estimation of cost. By…

A: Calculation:-   Hence, Coefficient of determination = 0.959 95.9% of the variation in total cost…

Q: Ah Importaht application of régression analysis in accounting is in the estimation of cost. By…

A: From the given data set ( a ) Regression equation ( 2 ) Variable cost per unit produced = ? ( c )…

Q: An important application of regression analysis in accounting is in the estimation of cost. By…

A: given that information  production volume(units)total…

Q: An article gave a scatter plot along with the least squares line of x = rainfall volume (m3) and y =…

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Q: (a) estimate a cost function using a linear regression. How many labor hours do you forecast for…

A: a) To estimate a cost function using a linear regression, we need to find the best line that fits…

Q: An important application of regression analysis in accounting is in the estimation of cost. By…

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Q: regression analysis in accounting is in the estimation of cost. By collecting data on volume and…

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Q: An important application of regression analysis in accounting is in the estimation of cost. By…

A: Given: n = 7 Formula Used: The equation of regression line is: Y = a + bX b = n∑XY-∑X∑Yn∑X2-∑X2 a =…

Q: An important application of regression analysis in accounting is in the estimation of cost. By…

A: a) The regression equation can be determined using excel as follows: Step 1: Put the data onto the…

Q: Based on this information, what percentage of the variation in overhead costs is explained by the…

A: Let the dependent variable (y) be overhead cost. The independent variable (x) is the direct labor…

Q: An important application of regression analysis in accounting is in the estimation of cost. By…

A: It is required to develop an estimated regression equation to predict the total cost for given…

Q: An important application of regression analysis in accounting is in the estimation of cost. By…

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Q: An important application of regression analysis in accounting is in the estimation of cost. By…

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Q: Advertising and Sales. Regarding the household-appliance manufacturer that wants to analyze the…

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Q: An important application of regression analysis in accounting is in the estimation of cost. By…

A: Regression:Denote the independent variable, production volume as x and the dependent variable, cost…

Q: An important application of regression analysis in accounting is in the estimation of cost. By…

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Q: The following data describes weekly gross revenue ($1000s), television advertising expenditures…

A: The variables are associated with each other, the One variable is used to find the value of the…

Q: The owner of Showtime Movie Theaters, Inc., used multiple regression analysis to predict gross…

A: a. R2=SSRSST    =32.734.9    =0.937 Adj R2=1-1-R2N-1N-p-1, N=sample size and p=number of variables…

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Q: 69. College Costs The table lists the average total tuition, fees, room, and board costs (in…

A: 69. (a) The regression analysis is conducted using EXCEL. The software procedure is given below:…

Q: me and cost, an accountant can estimate the cost associated with a particular manufacturing volume.…

A: An important application of regression analysis in accounting is in the estimation of cost. By…

Q: An important application of regression analysis in accounting is in the estimation of cost. By…

A: Production volume(units) xTotal cost($) y400400045050005505400600590070064007507000

Q: The value of a sports franchise is directly related to the amount of revenue that a franchise can…

A: It is given that The dependent variable is franchise value (Y) and the independent variable is…

Q: The percent of the total variance that can be explained by the regression equation is:

A: It is given that  r = 0.99821r2 = 0.99780

Q: An important application of regression analysis in accounting is in the estimation of cost. By…

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Q: In a study of housing demand, the county assessor develops the following regression model to…

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Q: particular location. The accompanying values were read from the plot. x7 12 14 17 23 30 40 47 55 67…

A: XY7412101413171423153025402747455538674672538471968211299127104

Q: An important application of regression analysis in accounting is in the estimation of cost. By…

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Q: A.. Find the linear model that best fits this data using regression and enter the model below (for…

A: Y = Dependent variable = demand (s) X = Independent variable = price (p) Insert the data in Excel.…

Q: The owner of Showtime Movie Theaters, Inc., used multiple regression analysis to predict gross…

A: Introduction: The quantity R2 is called the coefficient of determination and the quantity R2a is…

Q: a. Perform a regression analysis based on these data using Excel. Note: Negative values should be…

A: Here dependent variable (y) is Unit sales.There are two independent variables.Price per unit (x1)…

Q: An important application of regression analysis in accounting is in the estimation of cost. By…

A: (a) Here we need to find the estimated regression equation. The table of calculations is provided…

Q: 6 12 14 18 23 30 40 48 55 67 72 80 96 112 127 4 10 13 14 15 25 27 45 38 46 53 72 82 99 105 In USE…

A: (a) Yes, the scatter plot shows reasonable linear pattern. (b) slope=0.8547 Intercept=-2.3840 c)…

Q: An article gave a scatter plot along with the least squares line of x = rainfall volume (m³) and y =…

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Q: An important application of regression analysis in accounting is in the estimation of cost. By…

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Q: t produced? tound your answer to three decimal places.) t can be explained by production volume?…

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Q: An important application of regression analysis is in the estimation of cost. By collecting data on…

A: Given : Month Production Volume (units) Total costs January 2018 500 6000 February 2018 350…

Q: An important application of regression analysis in accounting is in the estimation of cost. By…

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Q: An important application of regression analysis in accounting is in the estimation of cost. By…

A: From the given data Find a Compute b0 and b1 Complete the estimated regression equation b. What is…

Q: An important application of regression analysis in accounting is in the estimation of cost. By…

A: Solution: Given information:  n = 6 observation.  The estimated regression equation is  y^=…

Q: An important application of regression analysis in accounting is in the estimation of cost. By…

A: Regression equation :  General form of regression equation is ,  y^ = b0+b1*x where , b1 is slope of…

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Correlation

Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.

Linear Correlation

A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related. 

Regression Analysis

Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.