Join Michael McDonald for an in-depth discussion in this video What you should know, part of Financial Forecasting with Big Data.
- [Narrator] What should you know in this course? Well, there's a few skills that you'll probably want to have before proceeding. First of all, we're going to be using a lot of Excel going forward. Excel is going to be a key tool in our forecasting efforts. I'm assuming that you have a lot of experience with Excel and you understand formulas and how to manipulate data in Excel. I'll be moving quickly through some of these formulas so it'll be helpful if you understand how to compute means and medians. It'll be helpful if you understand or have some experience with the Excel Analysis ToolPak.
And it'll certainly be imperative that you understand how to reformat numbers in Excel. This is a key skill that you should have before proceeding. In addition to that though, it'll be helpful if you have some basic background in business. In particular, there's three areas where I'm assuming you'll have a little bit of information before we get started, statistics, accounting, and finance. Within the realm of statistics, it'll be helpful if you understand basic univariate concepts like means, medians, correlations.
It'll also be helpful if you have at least some familiarity with the concept of a regression and fitting a regression line to a series of data points. I'll talk about this in some depth but again, it'll be helpful if you have a starting point for that discussion. In addition, you'll need to know basic terms in accounting and finance. We'll be talking about forecasting revenue, net income and using tools like capital expenditures and total assets. You'll need to know some of this terminology in order to follow along with me and get the most out of this course.
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.