6-14-22 – Regression Analysis Is a Powerful Forecasting Tool

NEWS ROUNDUP1The top story this week continues to be the overall state of the economy, as it has an obvious impact on small business.  A slew of data came in over the last few days, almost all of it negative.First, the Consumer Price Index, a widely used measure of inflation, surged 8.6% in May from a year ago. Second, partially fueling the red-hot inflation, is the price of gasoline, which is also on a record-setting tear.Third, the University of Michigan’s Index of Consumer Sentiment fell to its lowest level since the survey began in the mid-1970s. Fourth, every single chief financial officer questioned in the CNBC CFO Council survey for the second quarter believed that the US is heading for a recession.Fifth, according to an article published by Forbes last week, the price of semiconductor chips, fertilizer, and shipping have all started to fall.https://www.dol.gov/newsroom/economicdata/cpi_06102022.pdfhttps://gasprices.aaa.com/http://www.sca.isr.umich.edu/https://www.cnbc.com/2022/06/09/recession-will-hit-in-first-half-2023-the-dow-is-headed-lower-cfos.htmlhttps://fortune.com/2022/06/07/three-key-indicators-showing-inflation-is-poised-to-ease/---------- 2Effective July 1, the IRS is increasing the optional standard mileage rate used to deduct the cost of operating an automobile for business purposes to 62.5 cents per mile.https://www.irs.gov/newsroom/irs-increases-mileage-rate-for-remainder-of-2022---------- 3The Better Business Bureau recently published a list of the top 10 scams effecting small businesses.  Here’s another one you may not have given much thought to: phony invoices.https://www.bbb.org/article/news-releases/19932-bbb-warning-businesses-dont-fall-for-that-scam---------- FEATURE - Regression Analysis Is a Powerful Forecasting ToolFor many small businesses, predictive data analysis is basic at best, and probably altogether absent from the decision-making process.  That’s a shame, because today’s technology offers numerous ways for owners and managers to tap into powerful analytic tools without needing a degree in statistics.One such tool is called regression analysis, and it’s available in Microsoft Excel.  https://smallbusiness.chron.com/application-regression-analysis-business-77200.htmlhttps://www.nav.com/blog/regression-analysis-1354163/---------- This podcast is sponsored by Mai Thai Premium Coffee.  Enter the promo code FLASH at checkout for a 10% discount!  https://maithaicoffee.com/.---------- I would love to hear from you! Please email me at [email protected]. ----------Email me at [email protected] give me feedback on the podcast.Show web site:  www.smallbizflash.com