The method of cost estimation that minimises the sum of the squared deviations between the cost line and the data points is:
A) least squares regression.
B) visual fit.
C) account classification.
D) None of the given answers

Question

Quizplus · Accepted Answer

Least squares regression is a statistical method that helps to find the line of best fit that minimizes the sum of the squared deviations between the cost line and the data points. Therefore, A is the best choice. B, visual fit, is a subjective method and can vary depending on the individual's interpretation. C, account classification, is a method used for segregating cost according to their common characteristics for analysis and forecasting, but it does not provide an estimation of cost. D, none of the given answers, is not correct as A is the correct answer.

The Method of Cost Estimation That Minimises the Sum of the Squared