Date of Award

3-1970

Degree Type

Master's Essay - Restricted

Degree Name

Master of Business Administration (MBA)

Department

Business Administration

Abstract

Multiple regression analysis is a statistical technique for analyzing linear relationships between a dependent variable and a set of independent variables. If a significant relationship is found, this relationship can be utilized for probabilistic prediction of the dependent variable. With the advent of the present computer age, this complex statistical technique can become a relatively simple forecasting tool for management planning.

In order to illustrate some of the considerations involved in a typical application of this computerized tool, prediction of the final standings of the National Football League teams as attempted.

Program output indicated that although the relationship established was statistically significant, the amount of expected deviation in the prediction value was greater than what would be required for detailed prediction.

Due to the relative ease and low cost of using a step-wise multiple linear regression analysis computer program, usable of this tool is recommended as a relatively simple, flexible, and inexpensive method of forecasting for management planning. Rather than replacing the conventional Time-Series Analysis method of forecasting, multiple regression analysis should be considered as a supplemental, short-term business forecasting tool.

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