Regression analysis forms a mathematically determined line that best fits the data points. Software packages like Excel are available to perform regression analysis. This method is also called the Least Squares Regression.
In the following video, Bell demonstrates how regression analysis is applied to Danny Office Supplies to estimate the next month’s shipping costs. Bell does this by using Microsoft Excel where regression analysis is a built in function. See the optional appendix to Unit 3 if you would like to learn how to use this Excel function.