The High-Low Method Differs from the Scattergraph in That the High-Low

question 82

Multiple Choice

The high-low method differs from the scattergraph in that the high-low method

• A)is simple to prepare and interpret whereas the scattergraph requires the use of statistical methods.
• B)is less costly than the scattergraph method.
• C)uses a statistical technique to estimate the cost components.
• D)requires only two data points - the lowest point of activity and the highest point of activity.

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Definitions:

Affordable Care Act

A comprehensive health care reform law enacted in March 2010, aimed at expanding health insurance coverage in the United States.

Average Age

A statistical measure that represents the central or typical age in a population or group of objects, calculated by summing the ages and dividing by the number of subjects.

Health Care

The organized provision of medical services to individuals or communities to maintain or improve health, including prevention, diagnosis, treatment, and rehabilitation.

Deductibles and Copayments

are cost-sharing mechanisms in insurance policies where the insured must pay a fixed amount before the insurer covers expenses (deductible) and a portion of the cost of services (copayment).