Discussion Assignment Example | Topics and Well Written Essays - 250 words - 103

Discussion - Assignment ExampleFirst, reverse synopsis uses data from past events and therefore may not be accurate if unaccounted event occurs. For instance, a immanent catastrophe such as earthquake may stall all building constructions in a retainn area forcing customers to stop buying. If linear regression uses previous data where catastrophe was absent, then its expiry will be inaccurate. Such errors can be avoided by adding as many variables as feasibly attainable to the regression model used (Montgomery, 2011).Duration in which regression data points were taken determines the accuracy of the regression results. More data points are more likely to yield more accurate results. For instance, monthly gross revenue spanning about five years can provide accurate regression results of sales as contrary to quarterly sales of past one year. Lastly, regression modelling is only as accurate as the variables used (Seber et al. 2003). Too few variables may not give accurate predictio ns because they may not give accurate history. Too many variables may not give accurate prediction either because almost of the events may not happen in future. To improve the results, more data points should be used in conjunction with a fair number of multiple