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
47
$474
Period 2
44
$460
Period 3
42
$450
Period 4
40
$440
Required:
Using the least-squares regression method, estimate the cost formula for this cost.