Hypothesis Testing for Complete Beginners
Gathering data in itself is meaningless unless we can analyze it and draw powerful insights. What makes data interesting is the ability to evaluate and interpret it. Hypothesis testing refers to a term in statistics where we, as the analysts, evaluate an assumption related to a data set parameter. Based on the purpose of the […]
Internal Rate of Return (IRR) in Financial Analysis
Introduction to Internal Rate of Return Companies undertake various projects with the end goal to either increase earnings or cut down costs. These projects often require that the entities make significant investments. In capital budgeting, the management of the business wants to have an estimation of the returns on such investments. The Internal Rate of […]
Sales Trend Analysis and Forecasting in Excel
Introduction to Sales Trend Analysis Sales Trend Analysis looks at historical revenue data to identify patterns, used extensively in budgeting and forecasting. It is a useful method to detect short-term changes in revenue growth and performance. Trends A Trend is an upwards or downwards shift in the development of a metric over time. It’s useful […]
Decision Trees in Financial Analysis
Introduction to Decision Trees We use Decision Trees to clarify the expected value of capital investment opportunities. Decision Trees can also be helpful in business operations, where companies continuously struggle with big decisions on product development, operations management, human resources, and others. With Decision Tree analysis, we can better evaluate the alternative options. However, we […]