Forecasting techniques

Free IMA CMA Part 1 (Financial Planning, Performance, and Analytics) lesson in Planning, Budgeting, and Forecasting. 12 min read, ~1,806 words.

Simple regression fits by least squares (a is fixed cost, b is variable cost per driver unit); multiple regression fits. In multiple regression each coefficient is partial, measuring one driver's effect while holding the others constant. R² measures explanatory power (0 to 1); t-stat tests one coefficient; F-stat tests the...