What is piece-wise linear regression in SAP (EPM-BPC - Business Planning and Consolidation)?

SAP Term: piece-wise 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: 
  Piece-wise linear regression is a statistical technique used in SAP Business Planning and Consolidation (EPM-BPC) to analyze data points and identify trends. It is used to identify patterns in data that may not be easily visible when looking at the data as a whole. Piece-wise linear regression works by dividing the data into segments and then fitting a line to each segment. This allows for more accurate predictions of future values based on the trends identified in the data.
  
  How to use it: 
  In SAP Business Planning and Consolidation, piece-wise linear regression can be used to analyze data points and identify trends. To use this technique, first select the data points that you want to analyze. Then, divide the data into segments and fit a line to each segment. Finally, use the trends identified in the data to make predictions about future values.
  
  Tips & Tricks: 
  When using piece-wise linear regression, it is important to ensure that the segments are chosen carefully. If the segments are too small, then the analysis may not be accurate. Additionally, it is important to consider any outliers when selecting the segments as these can have an impact on the accuracy of the analysis.
  
  Related Information: 
  Piece-wise linear regression is related to other statistical techniques such as linear regression and logistic regression. Additionally, it can be used in conjunction with other techniques such as clustering and classification to gain further insights into data sets.