A disadvantage of the visual-fit method to approximate a cost function is ________.
A) it does not use all the available data
B) it is costly to apply
C) it does not capture the general tendency of the data
D) the placement of the line is subjective

Question

Quizplus · Accepted Answer

The disadvantage of the visual-fit method is that the placement of the line is subjective and dependent on the judgment of the person creating the graph. Therefore, different individuals may come up with different cost functions based on the same data, leading to inconsistencies in forecasting and decision-making.

A Disadvantage of the Visual-Fit Method to Approximate a Cost