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Summary

In this chapter you have learned how to use information about the variability in an indicator to make decisions about investment options when you do not have perfect information at your disposal. In particular, confidence intervals can help you to bracket the likely outcome by means of worst- and best-case scenarios, which gives you a range within which you can make your decision.

You have also learned how to use the powerful multiple regression technique to analyze data and to estimate the potential effect of a change in such variables as pricing, quality, and component share on an important outcome like profit margin. Excel provides convenient and powerful tools to assist you in these analyses, but it's necessary to understand the meaning of the results so you can apply them sensibly.


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