The difference between simple regression and multiple regression is that:
A) Simple regression is easier to perform in Excel than multiple regression
B) Simple regression is only performed once when estimating a cost function, whereas multiple regression is performed more than once
C) Simple regression uses only one cost driver, whereas multiple regression uses more than one cost driver
D) Simple regression is for estimating only one cost, and multiple regression is for estimating more than one cost

Question

Quizplus · Accepted Answer

Simple regression uses only one independent variable (cost driver) to estimate the dependent variable (cost), whereas multiple regression uses two or more independent variables (cost drivers) to estimate the dependent variable. Therefore, C is the correct choice as it accurately describes the difference between simple and multiple regression. The other options are not accurate explanations of the difference between simple and multiple regression.

The Difference Between Simple Regression and Multiple Regression Is That