Regression analysis is often used to provide a means to express the relationship between one or...

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Regression analysis is often used to provide a means toexpress the relationship between one or more input variables and aresult. It is easy to plot in Excel (“add trendline”) so is foundfrequently in business presentations. Your company has made a modelwith 10 different factors measured from past years’ and statesbased upon the model, the company expects to make a 23 milliondollar profit next year. Discuss possible concerns with banking onthe 23 million dollar prediction, including conceptsof

a. correlation
b. causation
c. single point prediction (that is, just plugging thevalues into the equation and saying that single number is theprediction of future performance)
d. confidence interval.
e. prediction interval.

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4.4 Ratings (937 Votes)

a Correlation The correlation gives evidence that how the data values are correlated based on the observed data Here the correlation between the variables is used to predict the data point of the future event Hence the prediction of the future data point is the result of See Answer

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