Statistical Data Analysis In Excel Section E: Noise Due to Sub-Populations and Time Lag
Note: It is assumed that you are familiar with the content of the modules Statistical Data Analysis In Excel Section C: Simple Linear Regression & Statistical Data Analysis In Excel Section D: Setting Bounds for Regression before commencing this module.
This e-learning module explains how to identify and address some common complexities that arise when running regression in an audit context.
Course Module available for 30 days after purchase.
In this module you will explore some common complexities that occur when you run regression. You will learn how to identify and address what statisticians call ‘noise’ in the data.
In particular this module will help you to recognise two common issues that arise: sub-populations and time lag. You will learn how to recognise sub-populations or sub-processes at work in your data and how to treat those sub-populations. Also learn how to address the effect of time lag on the plausible relationships in your data.
At the end of this activity you will be able to:
- Identify indicators of sub-populations in your data.
- Subdivide data to address sub-populations and sub-processes at work in your analyses.
- Construct analyses to address the impact of time lag upon the plausible relationships in your data.
- Recognise the special considerations when analysing time as a variable.
BenefitsKnowing how to address the two key complexities of sub-populations and time lag will help you to maximise your use of regression as an audit tool and persist with your analysis when hurdles arise.
Topic: Audit & Assurance
Sub-Topic: Internal Audit
Proficiency Level: Foundation, Intermediate
CPD: Upto 1.25 hours