Which method of approximating cost functions does NOT involve the analysis of past costs?
A) High-low analysis
B) Visual-fit analysis
C) Engineering analysis
D) Simple least-squares regression

Question

Quizplus · Accepted Answer

Engineering analysis is a method of approximating cost functions based on the underlying engineering and physical relationships between inputs and outputs, rather than relying on past cost data. The other three methods mentioned (high-low analysis, visual-fit analysis, and simple least-squares regression) all involve using past cost data to estimate future costs.

Which Method of Approximating Cost Functions Does NOT Involve the Analysis