Using the number of births in a historical record to predict the number of driver's licences issued in subsequent years is an example of the use of a(n) ____ variable in forecasting.

Question

Quizplus · Accepted Answer

The use of the number of births as a proxy for the number of driver's licences issued assumes a correlation between the two variables. In this case, the number of births is used as a surrogate variable to predict the number of driver's licences issued in subsequent years.

Using the Number of Births in a Historical Record to Predict