Automite Company is an automobile replacement parts dealer in a large metropolitan
community. Automite is preparing its sales forecast for the coming... Accounting MCQs | Accounting MCQs

Automite Company is an automobile replacement parts dealer in a large metropolitan
community. Automite is preparing its sales forecast for the coming year. Data regarding
both Automite’s and industry sales of replacement parts as well as both the used and new
automobile sales in the community for the last 10 years have been accumulated. If Automite
wants to determine whether its sales of replacement parts are dependent upon the industry
sales of replacement parts or upon the sales of used and new automobiles, the company
should employ

Simulation techniques.Correlation and regression analysis.Statistical sampling.Time series analysis.Show Result

Correct - Your answer is correct.

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Detailed Answer

Answer (B) is correct.
Correlation and regression analysis can be used to determine whether a
relationship exists among two or more variables. The degree of that
relationship is assessed by means of correlation analysis. Thus,
regressing sales (the dependent variable) on both sales of replacement
parts and sales of automobiles (independent variables) determines the
extent of the dependence.