What is linear regression in SAP EPM-BPC - Business Planning and Consolidation?

SAP Term: linear regression

• Component: EPM-BPC

• Component Name: Business Planning and Consolidation

• Description: An algorithm type the system uses when making predictions and analyzing root causes in Insight.

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• Key Concepts: 
  Linear regression is a statistical technique used to analyze the relationship between two or more variables. It is used to predict the value of one variable based on the values of other variables. In SAP Business Planning and Consolidation (EPM-BPC), linear regression is used to analyze the relationship between different financial data points, such as sales and expenses, and to forecast future values. 
  
  How to use it: 
  In SAP EPM-BPC, linear regression can be used to create a forecast model. To do this, you need to enter the data points that you want to analyze and then select the linear regression option. The system will then generate a forecast model based on the data points entered. The model can then be used to predict future values of the variables. 
  
  Tips & Tricks: 
  When using linear regression in SAP EPM-BPC, it is important to ensure that the data points entered are accurate and up-to-date. This will ensure that the model generated is accurate and reliable. Additionally, it is important to consider any external factors that may affect the data points entered, such as economic conditions or changes in customer demand. 
  
  Related Information: 
  Linear regression is just one of many statistical techniques available in SAP EPM-BPC. Other techniques include multiple linear regression, logistic regression, and time series analysis. Additionally, there are many other forecasting methods available in SAP EPM-BPC, such as Monte Carlo simulation and Markov chain analysis.