A CPA Firm Has Been Using the Following Equation to Predict

question 43

Essay

A CPA firm has been using the following equation to predict annual demand for tax audits: Y_t = 55 + 4t. Demand for the past few years is shown below. Is the forecast performing as well as it might? Explain. $$\begin{array} { l l l l c l l } \text { Year } & 2 & 3 & 4 & 5 & 6 & 7 \\\hline \text { Demand } & 60 & 65 & 69 & 76 & 85 & 85 \\\end{array}$$

$$\begin{array} { l l l l c l l } \mathrm { t } & \text { Demand } & \text { Forecast } & \mathrm { D } - \mathrm { F } & \mathrm { e } ^ { 2 } & \\\hline 2 & 60 & 63 &\ - 3 & 9 & \\3 & 65 & 67 & - 2 & 4 & \\4 & 69 & 71 & - 2 & 2 & \\5 & 76 & 75 & + 1 & 1 & \\6 & 85 & 79 & + 6 & 36 & \\7 & 85 & 83 & + 2 & 4 &\end{array}$$

Identify the difference between gut feelings and rational assessments in predicting outcomes.

Understand the concept of priming and its effects on perception and behavior.

Grasp the definition and significance of associative networks and schemas in memory and cognition.

Comprehend how personal importance influences the accessibility of schemas.

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Definitions:

Feedback

Information or criticism about a prior action or behavior from an individual, which is used as a basis for improvement.

Customer Needs

The requirements or desires that consumers have which drive them to purchase products or services to fulfill these needs.

Listening Level

The degree or depth of attention one gives to a speaker; it can vary from passive hearing to active, engaged listening.

Active Listening

A communication technique used in sales and other contexts, involving fully concentrating, understanding, responding to, and remembering what is said.