The high$-$low method $\_\_\_\_\_\_\_\_.$

Question $2$ options:

$1)$

measures the difference between actual cost and estimated cost for each observation of the cost driver

$2)$

calculates the standard deviation of residuals

$3)$

calculates the slope coefficient using only two observed values within the relevant range and their respective costs

$4)$

measures how well the predicted values, y$,$ based on the cost driver, X$,$ match actual cost observations, Y