Which of the following is the most sophisticated approach to estimate the collection percentages in the cash collection model:

Question

Quizplus · Accepted Answer

Lagged regression model is the most sophisticated approach to estimate collection percentages in the cash collection model. It takes into account variables such as seasonality, trends, and other relevant factors, which can greatly improve the accuracy of the estimate. Historical time period average and trial-and-error solution are less sophisticated and may not capture all the relevant variables, while the "desired" collection percentage approach relies on subjective judgment and may not be based on actual data.

Which of the Following Is the Most Sophisticated Approach to Estimate