Which of These Quantitative Techniques Can Be a Causal Model

question 2

Multiple Choice

Which of these quantitative techniques can be a causal model?

• A)linear regression
• B)last period
• C)exponential smoothing
• D)weighted moving average

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Definitions:

Financial Analysis

The process of evaluating businesses, projects, budgets, and other finance-related entities to determine their performance and suitability.

Financial Statements

Formal records of the financial activities and position of a business, individual, or other entity, typically including the balance sheet, income statement, and statement of cash flows.

Time-Series Analysis

A statistical method used to examine and interpret a sequence of data points, collected over a period of time, to identify trends or patterns.

Return On Equity

A measure of a corporation's profitability that reveals how much profit a company generates with the money shareholders have invested.