Which of the Following Is a Drawback of Using Regression

question 41

Multiple Choice

Which of the following is a drawback of using regression analysis?

• A)It is difficult to implement.
• B)It makes a number of assumptions about the data, and accounting data sometimes do not satisfy these assumptions.
• C)It is not a well-defined statistical method.
• D)It provides only one statistic to evaluate the data.
• E)None of the above are drawbacks of using regression analysis.

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Definitions:

Special Cause Variation

Variation in a process caused by identifiable factors, typically indicating that the process is not in control.

Process Capability

A statistical measure of a process's ability to produce output within given specifications.

Out Of Control Signals

Indicators within a process control or statistical control chart that highlight when a process is deviating from its stable state or specified limits.

Sampling Distribution

The probability distribution of a given statistic based on a random sample, used to make inferences about the population.