Cost Estimation, High-Low Method, Regression Analysis
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The results of a simple regression analysis using all 12 data points yielded an intercept of $11,854.55 and a coefficient for the independent variable of $126.22 (R-squared = .19, t = 1.5, SE = 974).
Problem
Calculate the quarterly forecasts for 2004 using the high-low method and regression analysis. Recommend which method should be used.
This question has the following supporting file(s):
- Warehouse and Transportation Expense.xls
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Solution Summary
This posting contains a comparison of two forecasting methods: High-low method and Regression analysis.
$2.19 
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- Answer_78900.xls
Active since 2006
Responses 812
Extracted Content from Question Files:
- Warehouse and Transportation Expense.xls
Quarter Warehouse & Transportation Expense ($000)
1(2001) 12,500
2(2001) 11,300
3(2001) 11,600
4(2001) 13,700
1(2002) 12,900
2(2002) 12,100
3(2002) 11,700
4(2002) 14,000
1(2003) 13,300
2(2003) 12,300
3(2003) 12,100
4(2003) 14,600
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