Forecasting from correlated data (making objective predictions to plan operations)

A useful part of statistical analysis is correlation, or the measurement of the strength of a relationship between collected variables from historical data. If there is a reasonable correlation, then regression analysis is a mathematical technique to develop an equation that describes the relationship between the variables in question. The practical use of this part of statistical analysis is that on the basis that collected data mimics future conditions, correlation and regression can be used for forecasting. The function, forecasting, is that activity that kicks off most of the other business functions-strategic considerations, operations, employment changes, budgeting, etc.