ACCA MA Syllabus B. Data Analysis And Statistical Techniques - Linear regression analysis - Notes ^{5 / 12}

A reliable approach to forecasting, using mathematical principles

Can use many date sets (unlike high-low, which uses only 2) so should be more accurate

It is only valid where the relationships involved are linear.

It still uses past data

It is a more complex technique to apply, requiring the mathematical derivation of values for a and b in the regression equation.