Advantages of the method of least squares over the high-low method include all of the following except
A) a statistical method is used to mathematically derive the cost function.
B) only two points are used to develop the cost function.
C) the squared differences between actual observations and the line (cost function) are minimized.
D) All the observations have an effect on the cost function.

Question

Quizplus · Accepted Answer

The method of least squares does not rely on only two points like the high-low method. Instead, it considers all available data and minimizes the differences between the actual observations and the line (cost function). This approach is statistically robust and provides a more accurate cost function. Therefore, option B is the exception, as it is not an advantage of the method of least squares.

Advantages of the Method of Least Squares Over the High-Low