Regression analysis is better than the high-low method of cost estimation because regression analysis:
A)Is mathematical.
B)Can provide greater precision and reliability.
C)Fits its data into a mathematical equation.
D)Takes less time.
E)Is a statistical method.

Question

Quizplus · Accepted Answer

Regression analysis uses statistical techniques to identify the linear relationship between the dependent and independent variables. It can provide greater precision and reliability in cost estimation compared to the high-low method, as it takes into account all data points instead of just the extreme values. Additionally, regression analysis fits the data into a mathematical equation, allowing for more accurate predictions of cost behavior.

Regression Analysis Is Better Than the High-Low Method of Cost