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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
Linear 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 130I do 130 x 10 = 1300
plus the value of A, this would be 1305?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
I 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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