Wesley 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, Wesley should use:
A) simple regression.
B) multiple regression.
C) a scatter diagram.
D) complex regression.
E) the high-low method.

Question

Quizplus · Accepted Answer

Since Wesley Enterprises has identified three key variables, multiple regression would be the best choice to create an objective forecast of revenues. Simple regression uses only one variable, while complex regression may introduce unnecessary complexity. A scatter diagram can be a helpful visual tool, but does not provide a quantitative forecast. The high-low method is a simplistic technique that only uses the highest and lowest data points, which may not accurately represent the whole data set.

Wesley Enterprises Has Determined That Three Variables Play a Key