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Statistical methods are considered to be superior techniques of demand estimation because:
a. The element of subjectivity in this method is minimum,
b. Methods of estimation is scientific,
c. Estimation is based on the theoretical relationship between the dependents and independents variable ,
d. Estimates are relatively more reliable and
e. Estimation involves smaller cost.
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leat cost factor combination
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This involves the characteristics of the production human as well as non human using the product concerned. For example it may pertain to the number and characteristics of children
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