The Steps for Using Regression Analysis to Estimate a Cost

Essay

The steps for using regression analysis to estimate a cost function are listed below in random order. Correctly number the steps from 1 to 8.
____ Write the cost function.
____ Plot the cost for each potential cost driver.
____ Perform the regression analysis.
____ Generate a list of possible cost drivers.
____ Gather cost and cost driver data.
____ Evaluate the sign and significance of the cost function's components.
____ Discard potential cost drivers that fail to explain a high proportion of variability in the cost.
____ Consider the behaviour of the cost.