Hello
I took the last paper in March and there was a topic on linear regression and unplanned variances. These are two things I haven't come across before. But does anyone know how to attempt these? I have looked through notes and can't find anything on linear regression.
TIA
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Linear Regression and Unplanned Variances
2mo ago#1Linear regression is not mentioned in the APM syllabus, but it is assumed knowledge from MA and PM.
See p72 of our MA notes.
I have looked at the page mentioned - however this doesn't really clear anything for me. i get the formula y = a+bx. But is there an example I can work this against?
Am I saying if A is 5
B is 10
and X is 130
I do 130 x 10 = 1300
plus the value of A, this would be 1305?
2mo ago#3Yes. That's right.
what if X is a minus figure? or Y has been worked out?
From what I remember, the example in the exam had the X and Y value already and asked to use linear regression to complete the next quarter of the rolling forecast
2mo ago#5I can't imagine that in a business question that x will be minus. It is likely to represent time, probably counting each year or each quarter. The regression line equation can then be used to predict the y value. If the actual y value is different then there is a variable between budget (ie prediction) and actual.
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