Regression analysis is a powerful tool used in finance to determine the most influential factors on a given outcome. This method involves carefully selecting independent variables that have the strongest correlation with the dependent variable. By ranking these variables in order of their explanatory power, we can accurately describe and predict the behavior of the dependent variable. This approach is essential in understanding complex financial relationships and making informed decisions. Through regression analysis, we can uncover valuable insights and gain a deeper understanding of the factors driving financial outcomes.
