Polynomial Regression Model of Making Cost Prediction In Mixed Cost Analysis

Abstract

Regression analysis is used across business fields for tasks as diverse as systematic risk estimation, production and operations management, and statistical inference. This paper presents the cubic polynomial least square regression as a robust alternative method of making cost prediction in business rather than the usual linear regression.The study reveals that polynomial regression is a better alternative with a very high coefficient of determination.

Keywords: Polynomial regression, linear regression, high-low method, cost prediction, mixed cost.