Which of the following statements about the methods for estimating a cost formula is incorrect?
A) A scattergram plot should precede the high-low method.
B) A scattergram plot should precede the least-squares regression method.
C) The preferred method is high-low.
D) The preferred method is least-squares regression.

Question

Quizplus · Accepted Answer

The preferred method for estimating a cost formula is generally the least-squares regression method because it uses all data points to minimize the sum of the squares of the errors, making it more accurate than the high-low method, which only uses two points.

Which of the Following Statements About the Methods for Estimating