16.5. Conclusion
Regression analysis is the examination of the effect of a change in independent variables on the dependent variable. It is a popularly used method to forecast sales. This chapter discussed a well-known estimation technique, called the least-squares method.
To illustrate the method, we assumed a simple regression, which involves one independent variable in the form of Y = a + bX. In an attempt to obtain a good fit, we discussed various regression statistics. These statistics tell how good and reliable the estimated equation is and help users set the confidence interval for their prediction.
Most important, we discussed how to utilize spreadsheet programs such as Excel to perform regressions, step by step. The program calculates not only the regression equation, but also all the regression statistics discussed in this chapter.
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