What Is the First Step in Using Regression Analysis as Part

question 54

Multiple Choice

What is the first step in using regression analysis as part of audit data analytics?

• A)Estimate the prediction equation using data that is not currently being audited
• B)Validate the prediction equation from a statistics point of view
• C)Compare the predicted values (auditor's expectation) with the actual values
• D)Use the regression equation to make predictions for the data being currently audited

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Definitions:

Foresee

The ability to anticipate or predict future events or outcomes based on current knowledge or insights.

Disruption

An interruption or disturbance that challenges the normal course or functioning of something, often leading to innovative solutions or changes.

Cluster

A group of similar things or people positioned or occurring closely together.

Avoidant

A personality trait or behavioral pattern characterized by the desire to avoid certain situations, tasks, or interpersonal interactions due to fear, anxiety, or discomfort.