课程: Using Data in Financial Analysis

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Regression analysis in finance

Regression analysis in finance

- [Instructor] Now, we've talked several times about regression analysis already. Regression analysis is a powerful tool for financial forecasting as I've said. Basically, in a nutshell, a regression is an attempt to explain the variation in one variable, what we refer to as the dependent variable, or the Y variable, using the variation in one or more independent variables, what we call the X variables. If those X variables or independent variables sufficiently explain the changes in the Y variable, then we can use the model for predictive purposes. And the nice thing is you can do all of this through Excel. Now, in order to do regression in Excel, you have to make sure you have the Analysis ToolPak. If you're not sure if you have it or you just want to check, or if you don't have it, how do you add that in? Well, you go to File, then Options, then Add-ins and click at the bottom where it says Manage Excel Add-ins, and click…

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