Which Predictive Analytics Technique Would Be Used to Predict Whether

question 3

Multiple Choice

Which predictive analytics technique would be used to predict whether a firm is likely to have a material misstatement in the coming year?

• A) Regression
• B) Classification
• C) Benford's law
• D) Monetary unit sampling

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Definitions:

National Debt

The entirety of funds that a country's governmental body has taken on as debt through several mechanisms.

Budget Surpluses

An excess of income or revenues over expenditures in a given period, meaning the government or organization has more money than it spends.

Automatic Stabilizer

An Automatic Stabilizer is an economic policy or program designed to offset fluctuations in a nation's economic activity without intervention by the government or policymakers, such as progressive taxes and welfare.

Unemployment Compensation

Financial payments made by the government to unemployed individuals who are actively seeking work but have not found employment.