The High-Low Method

question 58

Multiple Choice

The high-low method:

• A) Always selects the highest and lowest data points.
• B) Chooses the data points that are likely to produce a line that is representative of the data.
• C) Chooses the highest and lowest data points for the dependent variable only.
• D) Chooses the highest and lowest data points for the independent variable only.

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Definitions:

Demand Curve

A graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period, typically showing a downward slope from left to right.

Relationship

The way in which two or more people, groups, or countries interact and behave towards each other.

Target Return Pricing

A pricing strategy implemented by firms less concerned with the absolute level of profits and more interested in the rate at which their profits are generated relative to their investments; designed to produce a specific return on investment, usually expressed as a percentage of sales.

Profit Goal

A financial objective set by a company, aiming for a specific amount of profit over a certain period.