1.) Engineering cost estimates are usually based on operating conditions that are considered:

A.) optimal.

B.) practical.

C.) attainable.

D.) historical.

E.) realistic.

2.) A disadvantage of the high-low method of cost analysis is that it:

A.) typically results in a totally inaccurate cost formula.

B.) is too time consuming to apply.

C.) uses only two data points, which may not be representative of normal conditions.

E.) relies totally on the judgment of the person performing the cost analysis.

3.) In the standard regression equation of y = a + bx, the letter a is best described as the:

A.) independent variable.

B.) dependent variable.

C.) slope of the equation.

D.) intercept of the equation.