Which of the following is not true of the method of least squares?
A) The method uses only variable cost to calculate the total cost.
B) The method uses only two points to develop the cost function.
C) The method involves minimization of the squared differences between actual observations and the line (cost function).
D) The method offers ways to assess the reliability of cost equations.

Question

Quizplus · Accepted Answer

The method of least squares does not use only two points to develop the cost function; instead, it uses all available data points to minimize the squared differences between the actual observations and the estimated line (cost function).

Which of the Following Is Not True of the Method