Advantages of the Method of Least Squares Over the High-Low

question 54

Multiple Choice

Advantages of the method of least squares over the high-low method include all of the following except

• A) a statistical method is used to mathematically derive the cost function.
• B) only two points are used to develop the cost function.
• C) the squared differences between actual observations and the line (cost function) are minimized.
• D) All the observations have an effect on the cost function.

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Definitions:

Physical

Pertaining to the material world or the body, as opposed to the mind or virtual processes.

Economic

Pertaining to the production, distribution, and consumption of goods and services, or the material welfare of human society.

Psychological Barrier

An emotional or mental resistance that inhibits a person from achieving a goal or performing an action.