Jane is risk manager of ABC Manufacturing Company. She is trying to de

Jane is risk manager of ABC Manufacturing Company. She is trying to decide whether to self-insure her company’s workers compensation exposure or to purchase insurance.

Jane would like to use regression analysis to predict the number of workers compensation claims that will occur next year. The number of claims will be the dependent variable in the regression. All of the following would be reasonable independent variables to use EXCEPT
A) number of employees.
B) number of hours worked.
C) total assets.
D) payroll.

ANSWER

Answer: C