Create a systematic projection of a dependent variable based on a series of data that includes only one independent variable.
- I'm going to step away from Richard's financial statements…for a minute and focus a bit more on something…I really enjoy, real estate.…Imagine that Richard's needs to expand in the future…and is looking to purchase some buildings and warehouses.…Fortunately, regression can come in really handy…when you're thinking about buying and selling real estate.…You can look at values of properties…across certain variables and determine how much…a particular property should be worth.…Anecdotally, you may hear this referred to as pulling comps,…which is short for comparisons.…
Let's see if we can dial in on the potential price…of a property based on one predictor variable.…We're looking for a warehouse-type building…to hold all our goods, so it might be good…just to look at square footage and see…how that affects prices.…Since we're only looking at one variable,…we're going to call this a univariate regression.…Let's say that we have a sample of data…from around the area regarding square footage of properties…and their list prices.…
- Explain the four different types of financial statements.
- Distinguish between the types of moving averages.
- Determine a seasonal adjusted trend.
- Break down pro-forma financial statements.
- Identify cash flows, and what increased liabilities and decreased earnings generally indicate.
- Tell what a regression is.
- Outline the naive approach.
Skill Level Intermediate
Finance Foundations: Business Valuationwith Jim Stice1h 39m Intermediate
1. Finance Basics
2. Simple Financial Forecasting
3. Pro Forma Financial Statements
4. Projecting Cash Flows
5. Introduction to Regression Analysis
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