Regression analysis as a tool to forecast assumes that
1) inventory varies based on an equation relating inventory to sales
2) equity varies based on an equation relating equity to sales
3) accounts payable vary based on an equation relating payables to sales
4) plant varies based on an equation relating plant to sales
A)1 and 2
B)1 and 3
C)2 and 3
D)1, 2, and 3

Question

Regression analysis as a tool to forecast assumes that​
1) inventory varies based on an equation relating inventory to sales
2) equity varies based on an equation relating equity to sales
3) accounts payable vary based on an equation relating payables to sales
4) plant varies based on an equation relating plant to sales
A)​1 and 2
B)​1 and 3
C)​2 and 3
D)​1, 2, and 3

Quizplus · Accepted Answer

Regression analysis assumes that variables are related through an equation or formula. In the case of forecasting, the variables being considered are inventory, equity, and accounts payable. Each of these variables can be related to sales through an equation or formula, allowing for the use of regression analysis to forecast their values based on projected sales figures. Plant, on the other hand, is not directly related to sales and therefore would not be considered in a regression analysis for forecasting.

Regression Analysis as a Tool to Forecast Assumes That​

Regression Analysis as a Tool to Forecast Assumes That