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Seved Help Save & Exit As a preliminary step in the selection of variables to use in a statistical-forecasting model, the management accountant has calculated
Seved Help Save & Exit As a preliminary step in the selection of variables to use in a statistical-forecasting model, the management accountant has calculated the coefficient of correlation between the firm's sales and three economic Indexes. The results were as follows: Index B Coeficient of Correlation 0.105 -0.009 -0.854 59 Which of the following statements indicates the best course of action for the auditor to take in the development of a forecasting model? Mulople Choice include only index A in the model because it has the only positive coefficient of correlation nelude ony news and in the model because they have the only negative coefficients of correlation ducony index in the model because its coefficient of correlation is relatively high and therefore probably storiticaly wantint whe le coeficients of ins And l orekely to be in tonificant MacBook Air Which of the following statements indicates the best course of action for the auditor to take in the development of a forecasting model? Multiple Choice O Include only index A in the model because it has the only positive coefficient of correlation O include only indexes Band in the model because they have the only negative coefficients of correlation O Include only Index C in the model because its coefficient of correlation is relatively high end therefore probably statistically significant, while the coefficients of Indexes A and B are likely to be insignificant Drop all three indexes from further consideration because a coefficient of correlation of 10 is necessary for a statistically significant relationship
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