When using simple linear regression as a causal forecasting tool :
A) A linear relationship is identified between the demand and an external variable
B) A linear relationship is identified between the demand and the time period
C) An external variable is used as the dependent variable
D) Qualitative data is preferred over quantitative data

Question

Quizplus · Accepted Answer

In simple linear regression for causal forecasting, the goal is to identify a linear relationship between the demand (dependent variable) and an external variable (independent variable).

When Using Simple Linear Regression as a Causal Forecasting Tool