Bogata Enterprises has determined that three variables play a key role in determining company revenues. To arrive at an objective forecast of revenues for the next accounting period, Bogata should use:
A) simple regression.
B) multiple regression.
C) a scatter diagram.
D) complex regression.
E) the high-low method.

Question

Quizplus · Accepted Answer

Multiple regression is the appropriate statistical method for forecasting when there are multiple variables that influence the outcome. It allows for the analysis of the relationship between a dependent variable (in this case, company revenues) and two or more independent variables.

Bogata Enterprises Has Determined That Three Variables Play a Key