A Regression Model Is an Example of Which Type of Forecasting

question 7

Multiple Choice

A regression model is an example of which type of forecasting method?

• A) Causal
• B) Historical analogy
• C) Qualitative
• D) Life cycle analogy

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Definitions:

Net Present Value

The difference between the present value of cash inflows and the present value of cash outflows over a period of time, used in capital budgeting to assess the profitability of investments.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and operational efficiency.

Discount Rate

In discounted cash flow analysis, it's the rate employed to calculate the present value of anticipated cash flows.

Net Present Value

The discrepancy between the current value of incoming cash and the current value of outgoing cash throughout a given timeframe.