Question

Which of the following are true about Scattergraph Method?

Question 9 options:
a. It is easy to understand and apply
b. The cost estimates are not as precise as they are with other more sophisticated methods
c. It utilizes only two points in the analysis; so these could be abnormal observations
d. Quirks in cost behavior due to strikes, bad weather, breakdowns, and so on become immediately apparent to the trained observer

Answer 1

Answer: a. True - The scattergraph method is easy to understand and apply.

Explanation:

This is the simplest and most straight-forward statement that is universally true about the scattergraph method. The other options have elements of truth, but they also have limitations or qualifications. For example, while it is true that the scattergraph method is not as precise as some other methods (option b), and that it can reveal quirks in cost behavior (option d), these aren't necessarily defining characteristics of the scattergraph method. And option c is generally false, as scattergraphs use all data points, not just two.