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

question 91

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 techniques.
• 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:

Coefficient Of Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Dependent Variable

A factor in a study or model that is anticipated to vary as a result of alterations in the independent variable.

Independent Variable

An experimental variable that is changed or controlled to test its effects on dependent variables.

Coefficient Of Determination

A metric in statistics that evaluates the percentage of variability in the outcome variable that can be explained by the predictor variable(s).