Why is the high-low method inferior to the regression

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Question - Harbour Inc. collected the following data for the first six months of the year concerning its overhead costs and machine hours used.

Month

Overhead Costs ($)

Machine Hours

Jan

$62,000

400

Feb

52,000

320

Mar

64,000

395

Apr

58,000

350

May

57,000

350

June

54,000

325

Required - Why is the high-low method inferior to the regression estimation method (provide 1 reason only)?

Reference no: EM132717529

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