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What is Extrapolation?
The use of established trends from historical data to forecast future data
When would be good to use extrapolation?
For prediction
quick and cheap
not much data required
What are the Drawbacks of Extrapolation?
unreliable
info could be outdated
ignores qualitative factors
assumes past trends will continue unlikely in competitive business environments
Describe Correlation
Looks at the strength of a relationship between two variables
What is an Independent variable?
Factor That Causes The Dependent Variable To Change
What is a Dependent variable?
Variable influenced by the independent variable
What are Confidence intervals?
Gives the percentage probability that an estimated range of possible values in fact including the actual value being estimated to show the accuracy of statistical results rising from sampling.