Estimating cost functions is a process that is essential for finance professionals. Therefore, it is important that you understand the methods and best practices for conducting this process. For this Assignment, you use your assessment of cost function estimation methods in the context of the Netflix and Amazon Data Spreadsheet in this week’s Learning Resources. Then, you use this assessment, along with the ideas generated in this week’s Discussion, to develop cost function estimates for both Netflix, Inc., and Amazon.com, Inc. Use the following methods:
- Account classification
- Regression analysis methods
Use the attached spreadsheet to write a 2-page paper explaining which method you believe best estimates cost functions for both Netflix, Inc., and Amazon.com, Inc. Justify your response with supportive examples and references.