Question

A realtor is trying to predict the value of a home. He has quantitative data available and has evidence that the home price has a strong relationship to the square footage of the home. The best choice for a forecasting model is:_______.

a. linear regression.
b. moving average.
c. market survey.
d. exponential smoothing.

Answer 1

a. linear regression

Step-by-step explanation:

Based on the information provided within the question it can be said that in this scenario the best choice would be to use a linear regression. That is because this is used in order to best determine to what extent there exists a linear relationship between two variables. Which in this case would be the price of the house and square footage of the home.