The first step in regression analysis is to plot the cost data against each potential cost driver because the plots may show ________.
A)nonlinear trends in the data
B)outliers
C)nonlinear trends in the data and outliers
D)missing cost data

Question

Quizplus · Accepted Answer

Plotting the cost data against potential cost drivers can reveal both nonlinear trends in the data and outliers. This visual representation can help guide the selection of the appropriate regression model and identify any data points that may need to be further examined or addressed. Missing cost data would not be revealed through this step, as it only involves plotting existing data.

The First Step in Regression Analysis Is to Plot the Cost