Chapter 7. Business Analyses

In this chapter, we will cover the following recipes:

  • Forecasting using linear regression
  • Forecasting using periodic cycles
  • Allocating non-allocated company expenses to departments
  • Analyzing the fluctuation of customers
  • Implementing the ABC analysis

Introduction

In the first part of this chapter, we will focus on how to perform some of the typical business analyses such as forecasting, allocating values, and calculating the number of days from the last sale date.

To forecast future business, we frequently use linear regression to calculate the trend line, which can tell us how the business will likely be doing in the future, if everything continues in the same direction. Many businesses have a cyclic behavior, and the cycle ...

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