The XYZ Company Billing Department Has Decided to Assign One

question 51

Essay

The XYZ Company billing department has decided to assign one employee to each of its customers.This employee will be responsible for granting credit to the client and then handling the billing.XYZ believes this will result in better customer service,because the client will only have to deal with one person and that one person will be very familiar with the credit terms.As an auditor,would you agree with XYZ's decision?

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Definitions:

Residuals

The difference between the observed values of the dependent variable and the values predicted by the model in regression analysis.

Scatterplots

Graphs in which the values of two variables are plotted along two axes, the pattern of the resulting points revealing any correlation present.

Linear Model

A mathematical approach used in statistics to model the relationship between a scalar response and one or more explanatory variables.

Model

An abstract representation of a system or process, used to simulate and predict behavior or outcomes.