Advantages of the method of least squares over the high-low method include all of the following EXCEPT
A)a statistical method is used to mathematically derive the cost function.
B)only two points are used to develop the cost function.
C)the squared differences between actual observations and the line (cost function) are minimized.
D)all the observations have an effect on the cost function.

Question

Quizplus · Accepted Answer

All the other options are advantages of the method of least squares over the high-low method. Option B is not an advantage as the high-low method also uses only two points to develop the cost function.

Advantages of the Method of Least Squares Over the High-Low