The method of estimating cost relationships that finds the best statistical relation between cost and one or more independent variables is called
A) High-low estimation
B) Examination of scatter diagrams
C) Correlation analysis
D) Regression analysis

Question

Quizplus · Accepted Answer

Regression analysis is the method of estimating cost relationships that finds the best statistical relation between cost and one or more independent variables. High-low estimation involves using only the highest and lowest data points to estimate the cost relationship, while examination of scatter diagrams involves visually analyzing the relationship between cost and an independent variable. Correlation analysis measures the strength of the relationship between two variables, but does not estimate cost relationships.

The Method of Estimating Cost Relationships That Finds the Best