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:

Enduring Characteristics

Persistent traits or qualities that define an individual's personality or behavior over time.

General Tendencies

A term that refers to the common or usual patterns of behavior, thought, or emotion observed in an individual or group.

Alternate Form Reliability

A measure of reliability used to assess the consistency of test scores between different versions of the same test.

Test-retest Reliability

Test-retest reliability is a measure of consistency where the same test is administered to the same group of people at different times to assess the reliability over time.