As a Preliminary Step in the Selection of Variables to Use

question 103

Multiple Choice

As a preliminary step in the selection of variables to use in a statistical-forecasting model,the management accountant has calculated the coefficient of correlation between the firm's sales and three economic indexes.The results were as follows:
Which of the following statements indicates the best course of action for the auditor to take in the development of a forecasting model?

• A)Drop all three indexes from further consideration because a coefficient of correlation of + 1.0 is necessary for a statistically significant relationship.
• B)Include only indexes B and C in the model because they have the only negative coefficients of correlation.
• C)Include only index C in the model because its coefficient of correlation is relatively high and therefore probably statistically significant,while the coefficients of indexes A and B are likely to be insignificant.
• D)Include only index A in the model because it has the only positive coefficient of correlation.

Understand the dynamics of attitude activation and its impact on behaviour.

Understand the concept of social representations and their significance in cognitive structures grounded in social groups.

Recognize the role of values in shaping attitudes and behaviors.

Differentiate between various types of values and their applications in societal contexts.

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Definitions:

Statistical Analysis

The process of collecting, analyzing, interpreting, and presenting data to discover underlying patterns and trends.

Pay Equity Legislation

Legal standards aimed at eliminating gender or other discriminatory wage gaps by ensuring equal pay for work of equal value.

Market Comparability

The assessment of compensation and benefits relative to similar positions in the labor market to ensure competitive and fair practices.

Compensable Factors

Aspects of a job that are used to determine its worth for the purpose of setting compensation, such as skills required, responsibilities, and working conditions.