Which of the Following Is an Advantage of Using the Scatterplot

question 166

Multiple Choice

Which of the following is an advantage of using the scatterplot method over the high-low method to estimate costs?

• A)It is a statistical method to determine the "best fit."
• B)A cost analyst can review the data visually and eliminate outliers.
• C)The quality of the cost formula relies on the objective judgment of the analyst.
• D)The cost formula can be determined simply by looking at two points of data.

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Definitions:

Competitive Equilibrium Price Ratio

The ratio of prices that ensures the equality of supply and demand in a competitive market, often used to observe relative price changes between commodities.

Utility Function

A mathematical representation expressing an individual's preference ordering over a set of goods or services, used in economics to model decision making under uncertainty.

Min

Often short for "minimum," it represents the smallest or least possible amount or degree of a certain quantity or measure.

Numeraire Good

A benchmark or standard commodity against which the relative price of all other goods and services is measured in an economy.