Midwest City Motor Company Is Exploring Different Prediction Models That

Multiple Choice

Midwest City Motor Company is exploring different prediction models that can be used to forecast indirect labor costs. One independent variable under consideration is machine hours. Following are matching observations on indirect labor costs and machine hours for the past six months: In a high-low model, which months' observations would be used to compute the model's parameters?

A) 2 and 5
B) 1 and 6
C) 2 and 6
D) 4 and 5