Explain why high low line and regression line differs? - Answers

The high-low line is a simplistic method used in cost estimation that connects the highest and lowest data points to determine variable costs per unit, focusing only on extremes. In contrast, a regression line is derived from statistical analysis, capturing the overall trend of the data by minimizing the distance between the line and all data points, allowing for a more nuanced understanding of relationships. As a result, the regression line typically provides a more accurate representation of the data's behavior, while the high-low line may overlook significant variations.