What Is Characteristic of the Scatterplot Method of Cost Estimation

question 91

Multiple Choice

What is characteristic of the scatterplot method of cost estimation?

• A)The scatterplot method is influenced by extreme observations.
• B)The scatterplot method requires the use of judgment.
• C)The scatterplot method uses the least-squares method.
• D)The scatterplot method is superior to other methods in its ability to distinguish between discretionary and committed fixed costs.

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Definitions:

Probability of Success

The likelihood or chance that a specific event or outcome will occur, often represented as a percentage or a value between 0 and 1.

Discrete Random Variable

A variable that can take on a finite or countably infinite number of values, representing outcomes of a random process.

Variance

The measure of dispersion that represents the average of the squared differences from the mean of a data set.

Oil Firm

A company involved in the exploration, production, refinement, or sale of oil and oil products, often playing a significant role in the energy sector.