1. Statistics
  2. Correlation and Regression Analysis
  3. Regression Analysis
  4. 78900

Cost Estimation, High-Low Method, Regression Analysis

Please see the attached file for additional information.

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.

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Solution Summary

This posting contains a comparison of two forecasting methods: High-low method and Regression analysis.