Learn about simple regression analysis.
- [Instructor] Let's talk about regression analysis.…You might not be familiar with the term,…but a regression analysis is a very powerful…business tool that you can use to make…predictions and forecasts for your firm.…In particular, a regression is simply…a statistical model.…In it's most basic form, a regression is defined…by the equation you see here, y = ax + b.…What this is simply saying is that our dependent variable…y is driven by our independent variable x…plus a y intercept b.…
So we might think about this in say,…a situation trying to figure out how long…it'll take to drive to California…from somewhere else in the country.…The time to reach California is going to…be based on two factors, how fast we're traveling…and where we start from.…A is the speed at which we're driving.…X is the number of hours it'll take us to reach California.…And b is where we start from.…It takes longer to reach California…starting from Virginia, for example, than it does…if we start from Colorado.…
Similarly, it'll take us less time to reach…
Professor Michael McDonald demonstrates how to harness the wealth of information available on the Internet to forecast statistics such as industry growth, GDP, and unemployment rates, as well as factors that directly affect your business, like property prices and future interest rate hikes. All you need is Microsoft Excel. Michael uses the built-in formulas, functions, and calculations to perform regression analysis, calculate confidence intervals, and stress test your results. He also covers time series exponential smoothing, fixed effects regression, and difference estimators. You'll walk away from the course able to immediately begin creating forecasts for your own business needs.
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- Identify a good source of free data.
- Name the term for the estimate of the impact of an X variable on a Y variable.
- Tell which statistic offers a bounds on the estimate of the impact of an X variable on a Y variable.
- Assess the type of variable that can be used to capture fixed effects.
- Cite the method by which a forecast can be done with a regression.