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

---

Definitions:

Electrical Activity

The flow of electric charge that powers the functioning of cells, particularly nerve and muscle cells in the body.

Brain

The organ located in the skull responsible for central nervous system functioning, including thought, memory, emotion, touch, motor skills, vision, breathing, temperature, hunger, and every process that regulates our body.

Graph Paper

A type of paper printed with fine lines making up a grid used for drawing graphs, charts, or other precise diagrams.

Orthopedist

A specialist who diagnoses and treats diseases and disorders of the muscles and bones.