The high-low method can be used to approximate a cost function.A disadvantage of this method is ________.
A) it is difficult to apply due to rigorous calculations
B) it is very costly to use
C) it takes a long time to measure a cost function
D) it makes inefficient use of information because it does not use all the available data

Question

Quizplus · Accepted Answer

The high-low method only uses two extreme data points and ignores other data that could potentially provide more accurate information about the cost function. Therefore, it makes inefficient use of information.

The High-Low Method Can Be Used to Approximate a Cost