When teaching cost behavior in a managerial or cost accounting course, we explain that there are various methods a company can use to estimate its fixed and variable costs, including regression ...

Simple linear regression is commonly used in forecasting and financial analysis—for a company to tell how a change in the GDP could affect sales, for example. Microsoft Excel and other software ...

Figure 2: In a linear regression relationship, the response variable has a distribution for each value of the independent variable. (a) At each height, weight is distributed normally with s.d. σ = 3.