Cost prediction involves forecasting future cost levels based on historical cost behavior using various statistical techniques, such as linear regression, to inform budgeting, decision-making, and strategic planning.
The least squares method, also known as least squares regression, is a statistical technique used for estimating cost behavior by plotting observed cost levels against various activity levels and calculating the best fit line.
An analytical method used to quantify the relationship between two or more variables by fitting a linear equation to observed data. This method is commonly employed in finance, economics, and various scientific fields to identify trends and make predictions.
A scatter diagram, or scatter plot, is a graphical representation used to display observations of data points plotted on the x-axis and y-axis to visualize any potential relationship or correlation between two variables. It is often employed in various fields, including accounting, statistics, and data analysis.
