firm's sales and three economic indexes. The results were as follows:   Index Coefficient of Correlation A  0.105 B −0.009 C −0.854     Which of the following statements indicates the best course of action for the auditor to take in the development of a forecasting model?

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As a preliminary step in the selection of variables to use in a statistical-forecasting model, the management accountant has calculated the coefficient of correlation between the firm's sales and three economic indexes. The results were as follows:

 

Index Coefficient of Correlation
A  0.105
B −0.009
C −0.854
 

 

Which of the following statements indicates the best course of action for the auditor to take in the development of a forecasting model?

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