Your boss would like you to estimate the fixed and variable components of a particular cost. Actual data for this cost over four recent periods appear below. Activity CostPeriod 122 $121Period 228 $132Period 321 $117Period 429 $134Using the least-squares regression method, what is the cost formula for this cost?
A. Y = $75.50 + $2.02X
B. Y = $ 0.00 + $5.04X
C. Y = $72.64 + $2.13X
D. Y = $75.89 + $1.02X
Answer: A
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