Jane is risk manager of ABC Manufacturing Company.She is trying to decide whether to self-insure her company's workers compensation exposure or to purchase insurance.Jane would like to use regression analysis to predict the number of workers compensation claims that will occur next year.The number of claims will be the dependent variable in the regression.All of the following would be reasonable independent variables to use EXCEPT
A)number of employees.
B)number of hours worked.
C)total assets.
D)payroll.

Question

Quizplus · Accepted Answer

Total assets are not expected to have a direct relationship with the number of workers compensation claims. The number of employees, number of hours worked, and payroll are more logical independent variables to use in predicting the number of claims.

Jane Is Risk Manager of ABC Manufacturing Company