A Statistical Method for Finding the Best-Fitting Cost Equation to a Set

question 81

Multiple Choice

A statistical method for finding the best-fitting cost equation to a set of data is the

• A)scattergraph method.
• B)high-low method.
• C)visual fit method.
• D)least-squares regression methoD.Least-squares regression is the only statistical technique among those listed.

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Definitions:

Business Owner

An individual who owns and operates a business entity, assuming all risks and rewards of the venture.

Half-year Rule

A tax regulation allowing businesses to claim half-year depreciation for assets acquired or disposed of during a fiscal year.

Firms

Business organizations or entities engaged in commercial, industrial, or professional activities, either for profit or non-profit.

Interest Expense

The cost incurred by an entity for borrowed funds, often expressed as a yearly rate.