Join Michael McDonald for an in-depth discussion in this video Use Excel for regressions, part of Financial Forecasting with Big Data.
- [Instructor] It's time to use a hedonic prediction.…I'm in the 03_04 folder looking at…the begin employee theft file.…We've got a basic question.…Jack has assigned employees one, three, six and seven…to work today in the store.…Manager three is also working.…What should we expect the over/under on the register…to be at the end of the day?…In other words, should we expect the register…to have more cash in it versus sales?…Or should we expect the register to have less cash?…We're going to use the regression…that we ran previously to answer this question.…
So, I'm going to set up our variables as follows.…Cash in register is going to be the variable…that we're trying to predict.…Employee one, employee three, employee six…and employee seven are all working.…And manager three is working.…Now, I've got my values.…
I'm going to use my Y and my Xs here.…In this case, employee one, three, six and seven…and manager three are all working…so each of them get a one.…I'm not showing this, but if we wanted to add,…say, manager two, we could.…
Join Professor Michael McDonald and discover how to use predictive analytics to forecast key performance indicators of interest, such as quarterly sales, projected cash flow, or even optimized product pricing. 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. You'll walk away from the course able to immediately begin creating forecasts for your own business needs.
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- List the two methods of making decisions.
- Identify the most common method of conventional financial forecasting.
- Describe common challenges that come when trying to merge data.
- Assess the types of questions that business intelligence is best suited to answer.
- Distinguish the statistic that is most useful for estimating the impact of an X variable on a Y variable.