Regression analysis finds the relationship between two variables and is often used for projecting future data. It’s an extremely complicated formula that starts with…
Regression Equation(y) = a + bx
Slope(b) = (NΣXY – (ΣX)(ΣY)) / (NΣX2 – (ΣX)2)
Intercept(a) = (ΣY – b(ΣX)) / N
…but that’s just the beginning. You may want to leverage software to do the heavy analytical lifting for you.
In the example below (video), we’ll go over how regression analysis can predict 12 months of future sales data based on 3 years of historical data. arcplan Enterprise business intelligence software includes a linear regression formula that takes all the guesswork out of your calculations. You can change your assumptions with the click of a mouse and the system instantly delivers a new regression line that projects updated future data. Check it out and let me know what you think!