Final answer:
The correct answer to the student's question about the visual-fit method is 'I, II, and III.' The method involves creating a scatter diagram, is not completely objective, and helps identify outliers.
Step-by-step explanation:
The student's question pertains to the visual-fit method for analyzing data. When using the visual-fit method, the following statements are true:
The method results in the creation of a scatter diagram.
- The method is not totally objective because of the manner in which the cost line is determined.
- The method is helpful in determining outliers.
This makes the correct answer I, II, and III. The visual-fit method is subjective to some extent because the trend line is drawn by eye, which could introduce bias or error. Scatter diagrams are essential for visual analysis, and this method can indeed be used to help identify outliers using visual cues or additional lines representing standard deviation intervals.
For example, you could visually draw an extra pair of lines that are two standard deviations above and below the best-fit line on a scatter plot to identify potential outliers. This allows for a quick inspection of data points that may not conform to the general pattern indicated by the rest of the data.