What is an advantage of using the least squares (regression) method rather than the high-low method?
A) It can be calculated without a calculator.
B) Two points are used to develop the cost function.
C) For a given set of data, it will always produce the same cost formulae.
D) The outlying observations have no effect on the cost function when the calculations are complete.

Question

Quizplus · Accepted Answer

The least squares method always produces the same cost formulae for a given set of data, while the high-low method relies on selecting two points that may not be representative of the entire dataset. Additionally, the least squares method takes into account all observations, including outliers, in developing the cost function.

What Is an Advantage of Using the Least Squares (Regression)