Which of the following is a weakness of the regression method of cost estimation?
A)The method is not particularly useful when the physical relation between inputs and outputs is indirect.
B)The method is subjective.
C)The method requires that several relatively strict assumptions be satisfied.
D)The method is based on studies of what future costs should be rather than what past costs have been.

Question

Quizplus · Accepted Answer

The regression method of cost estimation requires several assumptions to be satisfied, such as linearity and constant variance of errors. Failure to satisfy these assumptions can lead to inaccurate cost estimates. Options A, B, and D do not accurately describe weaknesses of the regression method.

Which of the Following Is a Weakness of the Regression