The Scatterplot Method of Cost Estimation

question 21

Multiple Choice

The scatterplot method of cost estimation

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

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Definitions:

Symmetry

A property of shapes or designs where one half is a mirror image of the other half.

Bimodal

Describing a distribution that has two different modes or peaks in its frequency of occurrence.

Frequency

The number of times an event occurs within a given data set.

Skewed

Skewed refers to a distribution that is asymmetrical, where data points are more concentrated on one side of the scale, leading to a long tail on the opposite side.