Practical Spreadsheet Risk Modeling for Management

Modeling Relationships 159

In the present case, the additional amount of uncertainty using the

Bootstrap procedure is relatively small. It can, however, make an important

difference, especially in situations with relatively few data. Recognizing the

uncertain linear relationship produces an 80% condence interval for the

sales prediction ranging from around 10.9 to 16.2.

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5.9 Multiple Regression Models

The methods used in the Advertising–Sales model are readily generalized to

models that have a number of independent X variables. We will not provide

a complete analysis here, but in order to illustrate the appropriate Excel func- ...