Regression Analysis

Regression Analysis is a statistical method used to examine the relationship between two or more variables. By modeling the relationship between a dependent variable and one or more independent variables, it helps predict outcomes and understand how changes in the independent variables affect the dependent variable. In finance, regression analysis can be used to analyze trends, forecast future performance, and identify factors influencing financial results. It involves calculating the best-fit line through data points and assessing the strength and significance of the relationships. This technique aids in decision-making by providing insights into correlations and causations within financial data.