# Cost Estimation, High-Low Method, Regression Analysis

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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Neha Jain, ME

Rating 4.9/5

Active since 2006

PhD (IP), IIM Bangalore
ME, Maharaja Sayajirao University,Baroda
BE, Maharaja Sayajirao University,Baroda

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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