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:

CSCO

The stock ticker symbol for Cisco Systems, Inc., a multinational technology conglomerate.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk of financial loss, often represented by the yield on short-term government securities.

Expected Rate of Return

The anticipated return on an investment, calculated as the average of probable returns weighted by their likelihood.

CSCO

An abbreviation for Cisco Systems, Inc., a multinational technology conglomerate known for its networking hardware, software, and telecommunications equipment.