The ideal database for estimating cost functions contains ________.
A) numerous cost driver observations
B) only the independent variable and not the dependent variable
C) cost driver observations spanning a narrow range
D) a few values of the cost driver that are grouped closely together

Question

Quizplus · Accepted Answer

Numerous cost driver observations provide a wider range of data points, allowing for more accurate estimation of cost functions. The other options (B, C, and D) would not provide enough data for accurate estimation.

The Ideal Database for Estimating Cost Functions Contains ________