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Horton Homes is a construction company. While many construction companies recognize revenue using the percentage of completion principle, Horton Homes' revenue recognition policy is based
Horton Homes is a construction company. While many construction companies recognize revenue using the percentage of completion principle, Horton Homes' revenue recognition policy is based on the closing of the sale. Homes that are not sold yet are treated as inventory and should be a good indicator of potential revenue. Horton Homes would like to build a linear regression model for revenue. You use history inventory and ash values to determine if these variables should be used in the model. Using the data analysis regression functionality in Excel, the following regression statistics were generated:
tableStandard,,CoefficientsError,t Stat,Pvalue,InterceptCashInventory
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