Project managers need to make sense on the many data that they have. Analytical tools are used in project management to achieve such need. Such tools are used to create a forecast of potential outcomes based on the variations present in the environmental and project variables. There are different types of analytical tools used and one of the most common tools is regression analysis.
The regression analysis is a technique that involves examining the series of input variables in relations to the corresponding output results. This particular project management technique is used in establishing the statistical relationship between two variables. It is used to determine whether one variable, the independent variable, is used to predict the dependent variable.
In regression analysis, the stronger the relationship is between the two variables, the greater the accuracy in predicting their relationship. Project managers can easily see the relationship between two variables by using a simple linear formula and plotting the results on a chart.
Using this tool provides project managers a clearer understanding on the relationship of two things. Used together with the other analytical tools, they can use information for the better decision-making.
This term is defined in the 5th edition of the PMBOK.
