Which of the following is/are one of the criteria used when a manager evaluates an estimated cost function for decision making purposes?
A) economic plausibility
B) goodness of fit
C) irrelevant high-low outliers
D) specifications analysis
E) economic plausibility and goodness of fit

Question

Quizplus · Accepted Answer

Both economic plausibility and goodness of fit are important criteria when evaluating an estimated cost function for decision-making purposes. Economic plausibility ensures that the estimated cost function aligns with the economic theory and intuition, while goodness of fit ensures that the estimated cost function accurately captures the relationship between the input and output variables.

Which of the Following Is/are One of the Criteria Used