Which of the following is an advantage of the high-low method?
A)It minimizes the squared differences between actual observations and the cost function.
B)It is objective and simple to calculate.
C)It uses a statistical method to mathematically derive the cost function.
D)It identifies nonlinearity and outliers.

Question

Quizplus · Accepted Answer

The high-low method is objective and simple to calculate as it only requires two data points to determine the cost function. However, it does not minimize the squared differences between actual observations and the cost function, use a statistical method to mathematically derive the cost function, or identify nonlinearity and outliers.

Which of the Following Is an Advantage of the High-Low