For example, the 1992 floods which plagued Chicago’s business district forced hundreds of workers from their office buildings for days. Following the World Trade Center bombing, certain businesses relied on business interruption insurance to cover the losses and decided to suspend operations until the primary site was viable again. As these examples illustrate, businesses can suffer the repercussions of a disaster for months or even years. In fact, statistics indicate that 50% of businesses which sustain interruptions of a week or more due to problems at the primary site never recover.
Simple linear regression and correlation are used in business statistics to predict trends. For example, you might have a list of sales data from a group of stores. You can use that data to make predictions about where the sales are headed; regression can create a model for the future sales. Correlation takes a set of variables and tells you how well they are related. You can answer question like “…are increased sales due to the improving economy, a recent mail order campaign, or improved staff training?”
Regression fits data to a line.