An important application of regression analysis in accounting is in the estimation of cost. By collecting data on volume and cost and using the least squares method to develop an estimated regression equation relating volume and cost, an accountant can estimate the cost associated with a particular manufacturing volume. Consider the following sample of pro- duction volumes and total cost data for a manufacturing operation. Production Volume (units) Total Cost ($) 400 4000 450 550 5000 5400 5900 6400 7000 600 700 750

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