An explanatory forecasting technique in which the analyst must select independent variables that help determine the dependent variable is called
A)exponential smoothing.
B)regression analysis.
C)trend analysis.
D)moving average method.

Question

Quizplus · Accepted Answer

Regression analysis involves selecting independent variables that have a statistically significant relationship with the dependent variable in order to create a forecast. This technique is commonly used in financial and economic analysis to develop predictive models. Exponential smoothing and moving average are both methods of time series forecasting that do not involve selecting independent variables. Trend analysis involves identifying patterns and trends in historical data but does not require selecting independent variables either.

An Explanatory Forecasting Technique in Which the Analyst Must Select