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X is an independent variable, involved when making predictions about.
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X is an independent variable, involved when making predictions about.
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This is equivalent to drawing a line between the first and last observation, and extrapolating it into the future. Scenario Analysis: Evaluates how future events might evolve by constructing different scenarios. For example, a company might estimate their revenue in the next year, then compare it against the actual results creating a variance actual analysis. Use random sampling to simulate various scenarios. This linear relationship may not always hold during unexpected events like a market downturn.
