A manager has collected data on sales, the economy, and taxes over a number of years, and statistically estimates an equation that describes how each of these predictors has affected staffing levels in the past.This equation is used to predict future staffing levels.This is an example of ________.
A) regression analysis
B) ratio analysis
C) trend analysis
D) Markov analysis

Question

Quizplus · Accepted Answer

Regression analysis is a statistical method used to determine the relationship between a dependent variable (in this case staffing levels) and one or more independent variables (sales, the economy, and taxes). By estimating an equation that describes how each of these predictors affects staffing levels, the manager can use it to make predictions about future staffing needs. Ratio analysis involves comparing financial ratios to industry benchmarks or to the company's historical performance, and is not relevant to this scenario. Trend analysis involves looking at patterns in data over time, but does not necessarily involve predicting future values. Markov analysis is a method used to analyze transitions in a system, such as changes in customer behavior, and is not relevant to predicting staffing levels based on sales, the economy, and taxes.

A Manager Has Collected Data on Sales, the Economy, and Taxes