Which of the following is a shortcoming or disadvantage of the high-low method compared to regression analysis when estimating cost behavior?
a. The resulting estimation equation is valid only within the relevant range of activity of the underlying independent variable
b. The high-low method is limited to one independent variable
c. The high-low method is quicker and easier, and therefore less costly, to perform than running a regression analysis
d. Regression analysis uses all observations within a data set, which may include outliers resulting a less accurate estimation equation. The high-low method is limited to only the highest and lowest observation, resulting in a more accurate estimation equation.
e. Regression analysis requires a linear relationship between the dependent and independent variable, while high-low method does not making the high-low method available to more application