Regression Analysis

Regression analysis is a statistical method used to examine the relationships between different variables. 

Simple regression analysis is used to estimate the relationship between a dependent variable and a single independent variable. The dependent variable is something you wish to predict or explain, while the independent variable is what you use to explain or predict the dependent variable.

Overall, the value of using regression analysis in businesses can be found in, for example, forecasting sales in the near and long term; understanding inventory levels, supply and demand, and also in understanding how different variables can affect all of these.

You can find more practical information on our Identifying Mispriced Stocks use case to learn more about regression analysis.