Regression & Correlation analysis- A management tool of Decision making

Forecast your business- Utilise the statistical tools of Regression and Co-relation
Forecasting is always feel like making the castle in air but there are two approaches to make possible – Qualitative approach and Quantitative Approach. In First approach, future is predicting in the basis of expertise. DELPHI is one of the method where all the expert opinions abstarcts into one most agreed solutions.
Later technique is more precise and accurate because it used the scientific and mathematical formulae.
Regression and co-relation analysis method is used to do the same where future is predicted on the basis of historical data and predict the future.
In Regression analysis , the whole calculation is revolve around the dependent variable and independent variable.
Little bit confusiing- Let us understand by example.
Marketing expense and Sale target is Independent and dependent variable respectively. Now on the basis of Histroical data of sale and marketing, we can easily draw a straight line i.e Y= a+bx and then we can easily predict that if we expense such amount in marketing activities what will be sales in consieration of contraints.
This is very important tools for management decision making.
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