Advantages of the method of least squares over the high-low method include all 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

The statement "only two points are used to develop the cost function" is actually an advantage of the high-low method, not the method of least squares. The method of least squares uses all the observations to develop the cost function, making it more accurate and reliable. The other options mentioned are all advantages of the method of least squares.

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