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Your company's CEO is confused about her company's cost structure. The company manufactures sporting equipment (mostly baseballs, footballs, volleyballs, basketballs, baseball bats, and sports helmets). The CEO has indicated that the company's manufacturing process is such that the cost function cannot be determined exactly by observation, because the nature of the manufacturing process masks the behavior of the costs. She has asked you to suggest some methods that could be used to estimate the company's cost function.
Problem 1: Name three techniques you might suggest for use in estimating the company's cost function and describe the circumstances or factors associated with the company's cost structure and available data that you would use to select the most effective technique.
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