Regression Analysis and Forecasting 1.0 - User Guide and FAQ

Frequently Asked Questions - Regression Analysis and Forecasting

1. Why can't I see all of the cell formulas?
   The worksheets are protected to ensure the robustness of operation. However, critical formulas are outlined in the embedded help prompts.
   
   
2. When I open the file, it asks me if I want to enable macros. What should I do?
   You need to click "Yes" to accept macros in order to run the tools.
   
   
3. When I open the file, it doesn't ask me if I want to enable macros. Therefore, the macros are disabled. What should I do?
   In this case you need to set your macro security settings to Medium. You can do this by opening a blank workbook and choosing Tools >> Options >> Security >> Macro Security, and selecting the Medium level. You should now be presented with the option to enable macros on opening the template file.
   
   
4. I want to forecast my financials, but where do I start?
   The first goal of forecasting variables with multiple regression is the identification of the value drivers with the strongest relationship to your desired forecast variable. In order to do this you must first determine what data exists that you can attain to try in the model. This might include macro-economic data, volumes, prices, or other financial time-series data.
   
   
5. Why is the number of independent variables limited to ten?
   The number of independent variables that can be run is limited to ten in order to maintain reasonable processing times on slower computers. It is unusual to have more than ten independent variables that all hold a strong relationship to the dependent variable, without there being any multi-colinearity between them.
   
   
6. Why should I ensure all statistical tests are met before running my forecast?
   By satisfying the key statistical tests, when testing the relationships of your data, the validity of you forecast will be much stronger. This, in turn, can help you better understand what the true value drivers of your business are, and can improve business case quality.
   
   
7. I want to copy use my forecast results into another model, but I want them to read across the page, not down. How can I do this?
   You can copy your forecast results and then after selecting the first destination cell in your other model, choose Paste Special, then check the Values and Transpose boxes to paste the values across the page.
   
   
8. I want to convert my forecast time series to a higher frequency (like from months to years). How can I do this?
   You can convert you forecast time series into a different frequency by creating a pivot table report of the forecast data and corresponding date information. In your pivot table, you can right-click the date dimension, and choose Group and Outline, then Group to transform the data into a higher time frequency.