All the independent variables in a cost function estimated w

“All the independent variables in a cost function estimated with regression analysis are cost drivers.” Do you agree? Explain.

answer in your own words, ty

Solution

No, agree all the independent variables in cast function estimated with regression analysis are cost drivers. Because

1 linearity of relationship between the dependent variable and independent variables with in the relevant range.

2 constant variable of residual for all values of the independent variables

3 independent of residuals

4 normal distribution of residuals