Which of the Following Is an Advantage of Using the Scatterplot

question 166

Multiple Choice

Which of the following is an advantage of using the scatterplot method over the high-low method to estimate costs?

• A)It is a statistical method to determine the "best fit."
• B)A cost analyst can review the data visually and eliminate outliers.
• C)The quality of the cost formula relies on the objective judgment of the analyst.
• D)The cost formula can be determined simply by looking at two points of data.

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Definitions:

Marginal Utility

The increase in contentment or advantage a person obtains by consuming another unit of a good or service.

Marginal Utility

The additional satisfaction or usefulness obtained from acquiring or consuming one more unit of a product.

Total Utility

The aggregate level of satisfaction or fulfillment that a consumer receives through the consumption of goods or services.

Total Utility

This is the aggregate level of satisfaction or value that consumers derive from consuming a given amount of goods or services.