Understanding and predicting warranty expense is an important determination for manufacturing firms.When using historical claims data to estimate the current period's warranty expense,the historical claims data represents which of the following?
A) Independent variable
B) Dependent variable
C) Function
D) Statistical Model

Question

Quizplus · Accepted Answer

The historical claims data is used as the independent variable because it is the input or predictor that is used to estimate or predict the warranty expense, which would be the dependent variable in this context.

Understanding and Predicting Warranty Expense Is an Important Determination for Manufacturing