What Would Be the Best Possible Independent Variable in a Regression

question 49

Multiple Choice

What would be the best possible independent variable in a regression determining Sales next period, Sales_t+1?

• A) Sales _t+1
• B) Sales _t
• C) Sales _t-1
• D) Sales _t-2

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Definitions:

Merchandise Inventory

The value of a company's commodities or goods available for sale to customers at any given time.

Periodic Inventory System

An inventory accounting system where updates are made on a periodic basis, not continuously, often used in smaller businesses.

Purchases Returns and Allowances

Transactions where a buyer returns goods to the supplier or receives a reduction in the purchase price, reducing the amount owed to the supplier.

Merchandise Inventory

The goods a company holds for the purpose of selling to customers.