From the course: Financial Forecasting with Analytics Essential Training

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Confidence intervals around the result

Confidence intervals around the result - Microsoft Excel Tutorial

From the course: Financial Forecasting with Analytics Essential Training

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Confidence intervals around the result

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- [Instructor] Now we've run our regression and we have coefficients that we can use to make a prediction. But what we don't know yet is how confident we can be in those coefficients. We don't have a way to stress test those coefficients to figure out whether or not the predictions that we're going to make based on them are going to be particularly accurate or not. That's what we're going to talk about in just a moment. If you recall, we've got a variety of different data points, almost 400,000 rows of data and roughly a dozen different variables covering various corporate financial characteristics along with sales of the firm. And we were trying to predict the sales of a company based on that. To that end in sheet one, we ran this regression and we saw that the regression was reasonable overall. We had a 45% R squared and our coefficients looked highly statistically significant based on the P values. But what we don't…

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