Which Statement Is Not True About Regression Analysis

question 21

Multiple Choice

Which statement is not true about regression analysis?

• A) Regression analysis is a powerful and flexible procedure for analyzing associative relationships between a metric dependent variable and one or more independent variables.
• B) Regression can be used to predict the values of the dependent variable.
• C) The terms dependent or criterion variables and independent or predictor variables in regression analysis do not imply that the criterion variable is dependent on the independent variables in a causal sense.
• D) Regression analysis can be used to determine if color preference is related to product size and price.

---

Definitions:

Absorption Costing

A method in accounting that totals up all expenses of manufacturing including costs for direct materials, direct labor, along with variable and fixed overhead, assigning them to the cost of a product.

Unit Product Cost

The total cost to produce one unit of a product, including direct materials, direct labor, and manufacturing overhead.

Variable Costing

A costing method that includes only variable costs—direct materials, direct labor, and variable manufacturing overhead—in the cost of a unit of product.

Unit Product Cost

The total cost (both fixed and variable) associated with producing a single unit of product.