Final answer:
Extending the length of a time period in cost estimation can lead to increased complexities like confounding data and more recording lags or cut-off errors, rather than necessarily providing better results or increasing the explanatory power of the data.
option e is the correct
Step-by-step explanation:
Extending the length of a time period in cost estimation may lead to a few different outcomes. While it may seem intuitive that having more data by extending the time period would lead to better results, it can sometimes introduce complexities that compromise the quality of the data.
Option a) suggests that extending the time period would result in fewer recording lags or cut-off errors. This is not necessarily true; instead, longer time periods may actually cause more lags or cut-off errors because there is more data to process and more opportunity for delays in recording or reporting.
Option b) indicates that confounding data could be a result. This is more accurate because with a longer time period, there is a greater chance of external variables introducing noise and uncertainty into the dataset, which complicates analysis.
Option c) increasing the explanatory power of the data is possible, but this depends on the consistency and quality of data over the extended period. If data quality diminishes or if confounding factors increase, the explanatory power may not necessarily improve.
Option d) suggests that better results come from more data, which is a common misunderstanding. More data can sometimes lead to better results, but only if the additional data is relevant, accurate, and not confounded by external factors.
Option e) about more recording lags or cut-off errors is plausible, as mentioned earlier, given that a longer data collection period could complicate timely recording and introduce errors.
In conclusion, extending the time period for collecting data in cost estimation can sometimes introduce more complexity, such as confounding data and errors, rather than improving the results. A balance needs to be found between the quantity of data and the quality and relevance of that data.