Assignment: Estimating Cost Functions for Major Retailers

Estimating cost functions is a process that is essential for finance professionals. Therefore, it is important that you understand the methods and best practices for conducting this process. For this Assignment, you use your assessment of cost function estimation methods in the context of the Netflix and Amazon Data Spreadsheet in this weeks Learning Resources. Then, you use this assessment, along with the ideas generated in this weeks Discussion, to develop cost function estimates for both Netflix, Inc., and Amazon.com, Inc. Use the following methods:

Account classification

High-low

Regression analysis methods

For this Assignment, explaining which method you believe best estimates cost functions for both Netflix, Inc., and Amazon.com, Inc. Justify your response with supportive examples and references.