ITPEC FE Morning October 2019 Question 76
ITPEC FE Morning October 2019 — Question 76 of 80
Regression Analysis — forecasting numerical values from historical data.
Regression analysis builds a mathematical relationship between variables using past data (e.g., advertising spend vs. revenue) to predict future outcomes.
Why not others:
- (a) Cluster analysis — groups similar items together (e.g., customer segmentation); does not predict numerical values
- (b) Delphi method — subjective expert opinion gathered through multiple rounds of surveys; not data-driven forecasting
- (c) Pareto analysis — identifies the most significant factors using the 80/20 rule; used for root cause prioritization, not prediction
Key rule: "Forecast" + "historical data" → regression analysis.
AI-generated — may contain errors
The original exam layout is preserved in the image so diagrams, formulas, tables, and code remain accurate.
This question comes from an official ITPEC past paper. ITPEC Practice is an independent study tool and is not affiliated with ITPEC. See the official FE past-paper collection or Report an issue.