Data Analytics For Accounting
19th Edition
ISBN: 9781260375190
Author: RICHARDSON, Vernon J., Teeter, Ryan, Terrell, Katie
Publisher: Mcgraw-hill Education,
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Textbook Question
Chapter 3, Problem 9MCQ
Models associated with regression and classification data approaches have all except this important part:
- a. Identifying which variables (we’ll call these independent variables) might help predict an outcome (we’ll call this the dependent variable).
- b. The functional form of the relationship (linear, nonlinear, etc.).
- c. The numeric parameters of the model (detailing the relative weights of each of the variables associated with the prediction).
- d. Test data.
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In comparing two regression models that were developed using the same data, we might say that the model with the higher R2 value will provide the most accurate predictions. Is this true? Why or why not? If not, what would be the better parameter to use to compare two regression models? Provide at least one example to illustrate your arguments.
Discuss the sensitivity of the model to changes in the value of the input variables
Which of the following statements about Least Squares Regression is not true ?
Least -squares regression is a mathematical technique to fit a cost -estimating equation to observed data .
In least -squares regression , a statistical measure (R -squared ) can be used to determine how well the equation fits the data .
Least -squares regression is considered superior to the high -low method because it uses more data points than just the high and low points
None of the listed choices are the correct answer because all of the listed choices are true .
Least -squares regression maximizes the vertical squared difference between the estimated and actual costs at each data point .
Chapter 3 Solutions
Data Analytics For Accounting
Ch. 3 - Prob. 1MCQCh. 3 - Prob. 2MCQCh. 3 - Prob. 3MCQCh. 3 - Prob. 4MCQCh. 3 - In general, the more complex the model, the...Ch. 3 - In general, the simpler the model, the greater the...Ch. 3 - _____ is a discriminating classifier that is...Ch. 3 - Prob. 8MCQCh. 3 - Models associated with regression and...Ch. 3 - Prob. 10MCQ
Ch. 3 - What is the difference between a target and a...Ch. 3 - What is the difference between a supervised and an...Ch. 3 - Prob. 3DQCh. 3 - Prob. 4DQCh. 3 - Prob. 5DQCh. 3 - Prob. 6DQCh. 3 - How might classification be used in approving or...Ch. 3 - Prob. 8DQCh. 3 - How does fuzzy match work? Give an accounting...Ch. 3 - Compare and contrast the profiling data approach...Ch. 3 - Exhibits 3-1, 3-2, 3-3, and 3-4 suggest that...Ch. 3 - Prob. 1PCh. 3 - Prob. 2PCh. 3 - An auditor is trying to figure out if the goodwill...Ch. 3 - How might clustering be used to explain customers...Ch. 3 - Why would the use of data reduction be useful to...Ch. 3 - How could an investor use XBRL to do an analysis...Ch. 3 - Prob. 7P
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- What is the Scatterplots and regression lines, what are the differences amomg them?arrow_forwardhow can I calculate in regression analysis the confidence interval of y-intercept?arrow_forwardExperimental outcomes that are based on measurement scales such as time, weight, and distance can be described by _____ random variables. a. uniform b. discrete c. continuous d. intermittentarrow_forward
- which one is correct please confirm? QUESTION 28 The kind of analysis that consists of rerunning the model to determine the effect on the output variables of changes in the input variables is __________. a. scenario analysis b. probabilitistic analysis c. simulation d. sensitivity analysisarrow_forwardConsider the following time series: a. Construct a time series plot. What type of pattern exists in the data? b. Use simple linear regression analysis to find the parameters for the line that minimizes MSE for this time series. c. What is the forecast for t = 6?arrow_forwardWhich of the following is not one of the main issues regarding data collection which can significantly affect precision and reliability when using regression or any other cost estimation method? Multiple Choice Time period choice. Nonlinearity. Relevant range. Data accuracy.arrow_forward
- Compare the linear and nonlinear CVP analysis and provide analyses about the effectiveness of both.arrow_forwardWhat are the two main variables the researcher should consider collecting data for the purpose of the above analysis and why? Identify the data type(s) for the variablesarrow_forwardIn linear regression, compare independent and dependent variables.arrow_forward
- An advantage of the high-low method is that it a. is subjective. b. is objective. c. is the most accurate method. d. removes outliers e. is descriptive of nonlinear dataarrow_forwardAccording to the text explain briefly when Sensitivity analysis can be used?arrow_forwardThe following information pertains to data that have been gathered in the process of estimating a simple least-squares regression: mean value of the dependent variable 30 mean value of the independent variable 10 Coefficient of the independent variable 3 Number of observations 12 What is the "a" value for the least squares regression model?arrow_forward
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