Business Statistics Made Easy in SAS

Step 1: Statistics Gives Level of or Change in Focal Variables

The Statistical Effect

Financial extrapolation needs to be based on one or more focal variables, although not necessarily all the variables in an analysis. Most important in financial extrapolation is to consider whether the focal variables can be valued with regard to revenue or cost, as we discuss later.

When considering statistics that focus on associations between multiple variables the focal variable would often be a dependent variable, which is a construct that we use other variables to explain or predict. In Chapter 8 we considered some simple association variables like correlation; in later chapters we considered techniques like regression, which seek to explain or predict ...