Simple regression is known as "simple" because it includes only one cost driver.

Question

Quizplus · Accepted Answer

Simple regression is a statistical tool used to analyze the relationship between two variables, one of which is considered the independent variable, or cost driver, and the other is the dependent variable. Simple regression models have only one independent variable, making them less complex than multiple regression models that include multiple cost drivers. Therefore, the statement that simple regression includes only one cost driver is true.

Simple Regression Is Known as "Simple" Because It Includes Only