Comparing least-squares regression to high-low estimation:
A) Least-squares regression is preferred to high-low estimation because with this method, the computer can make all the decisions after data entry
B) Least-squares regression provides superior estimates to high-low estimation when using unreliable data
C) Least-squares regression provides a means of estimating how well the data fit the model
D) All of the above

Question

Quizplus · Accepted Answer

Least-squares regression is a mathematical model that not only uses the data points to determine the cost curve, but it provides statistics to en able the user to know how well the data fit the cost curve and how reliable the model is in estimating costs.

Comparing Least-Squares Regression to High-Low Estimation