Question: Below are cost and activity data for a particular cost over the last four periods. Your boss has asked you to analyze this cost so

Below are cost and activity data for a particular cost over the last four periods. Your boss has asked you to analyze this cost so that management will have a better understanding of how this cost changes in response to changes in activity.

Activity

Cost

Period 1

46

$

791

Period 2

40

$

738

Period 3

47

$

807

Period 4

41

$

746

Required:

Using the least-squares regression method, estimate the cost formula for this cost.

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