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Break-even calculations, scatter plots used in estimating demand, and trends in revenue are examples of data that can be simplified to a straight line. This is useful, but sometimes these data are more complex. They may form a curved line, or instead of there being only one item for the slope, such as with variable costs, there may be several factors involved in the estimate. Demand, for example, may be based on price, convenience, and quality. How does a linear regression allow you to better estimate trends, costs, and other factors in complex situations?
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