What Is an Advantage of Using the Least Squares (Regression)

question 101

Multiple Choice

What is an advantage of using the least squares (regression) method rather than the high-low method?

• A) It can be calculated without a calculator.
• B) Two points are used to develop the cost function.
• C) For a given set of data, it will always produce the same cost formulae.
• D) The outlying observations have no effect on the cost function when the calculations are complete.

---

Definitions:

Industrious Franchisee

A franchisee who demonstrates exceptional dedication and work ethic in managing and growing their franchised business.

Franchised Restaurant

A restaurant that operates under the branding and operational guidelines of a larger chain, typically through a licensing agreement.

Sharing Contracts

A type of franchising agreement under which the franchisee pays the franchisor a percentage of revenue rather than a fixed fee.

Marginal Benefit

The additional benefit received from consuming one more unit of a good or service.