1. In what cultures might analysts be more willing to reveal errors they made in estimating costs?
2. When estimating fixed and variable costs, it is possible to have an equation with a negative intercept. Does this mean that at zero production the company has negative fixed costs?
3. Refer to the Managerial Application ‘‘United Airlines Uses Regression to Estimate Cost Behavior.'' What independent variables did the analysts use in the regression? What did the analysts who developed the regression conclude? Based on your experience, do you agree with their conclusions?