Regression Line Definition
Regression Line Definition:
A line fitted to an array of plotted points. The slope of the line, denoted by the letter b in the linear equation Y = a + bX, represents the average variable cost per unit of activity. The point where the line intersects the cost axis, denoted by the letter a in the above equation, represents the average total fixed cost.
Other Related Accounting Articles:
- Scatter Graph Method Definition
- Least-Squares Regression Method Definition
- Independent Variable Definition
- Dependent Variable Definition
- Multiple Regression Definition
- Variable Cost Definition
- Adjusted R2 Definition
- High-Low Method
- Long Run Average Total Cost
- Cost Volume Profit Analysis
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