Comparing least-squares regression to high-low estimation:
A) Least-squares regression better predicts costs outside the range of past observations
B) Least-squares regression makes fuller use of the data
C) Least-squares regression requires fewer calculations
D) All of the above

Question

Quizplus · Accepted Answer

The high-low method only uses two data points in establishing the cost estimation equation; whereas, least squares regression uses all of the available data to provide the best fit of the cost estimation equation to the data.

Comparing Least-Squares Regression to High-Low Estimation