You're a workers' compensation claims analyst working for large manufacturing organization (worker's compensation is worker injury protection; it pays medical as well as other expenses for workers who were injured on the job). A key part of your responsibilities is to "reserve" the certain amount of funds for each workers' compensation claim you procedure, which is necessary for making sure that each injury claim has adequate funds to pay its costs. This needs you to forecast, or determine the expected future cost of each claim, which is both time-consuming and difficult, as there are multiple factors (such as the nature of injury, worker's age, the nature of accident, etc.) that determine the ultimate cost of individual claims. Having a lot of historical data (past claims), you decide to use regression analysis to help you forecast the expected cost of the individual workers' compensation claims.