The high-low method frequently distorts a cost function because it uses too few data points to make an estimate.

Name: The high-low method frequently distorts a cost function because it uses too few data points to make an estimate.
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Question

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The high-low method uses only the highest and lowest data points to estimate a cost function. This can lead to a distortion of the true cost function as it may not accurately represent the relationship between costs and the level of activity.

The High-Low Method Frequently Distorts a Cost Function Because It