Chapter three Assignment one

company has recorded its total cost for different levels of activity over the last five

months as follows:

Month              Activity level          Total cost

DETAILS                      (units)                  (KSHS)

7                                    300                 17,500

8                                      360                19,500

9                                    400                  20,500

10                                   320                   18,500

11                                      280                17,000

The equation for total cost is being calculated using regression analysis on the above data.

The equation for total cost is of the general form ‘y = a + bx’ and the value of ‘b’ should  be

calculated correctly to 2 decimal places.

What is the value of ‘a’ (to the nearest KSHS) in the total cost equation?