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Patricia was attempting to estimate a model for her small business's overhead costs. She is 99.9% sure that overhead costs are driven primarily by production,
Patricia was attempting to estimate a model for her small business's overhead costs. She is 99.9% sure that overhead costs are driven primarily by production, but she also knows that this cost isn't entirely variable. So she grabbed the last 8 months of production and overhead cost data, listed it out, and plotted it as follows. (a1) Patricia is planning to use the high-low method to estimate this cost function. Is it important for the data to exhibit a linear relationship when using this method? It important for the data to exhibit a linear relationship. eTextbook and Media Attempts: 0 of 3 used
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