The high-low method is more accurate than the regression method of estimating a cost function.

Question

Quizplus · Accepted Answer

The regression method is generally considered more accurate than the high-low method because it uses all the available data points to estimate the cost function, while the high-low method only uses two data points (the highest and lowest). Therefore, the regression method provides a more complete picture of the relationship between the cost and the level of activity.

The High-Low Method Is More Accurate Than the Regression Method