A statistical procedure that seeks to explain a certain phenomenon, such as the return on a common stock, in terms of the behavior of a set of predictive factors.
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Break even analysis
Break even analysis An analysis of the level of sales at which a project would make zero profit.
Cluster analysis
Cluster analysis A statistical technique that identifies clusters of stocks whose returns are highly correlated within each cluster and relatively uncorrelated across clusters. Cluster analysis has identified groupings such as growth, cyclical, stable, and energy stocks.
Common base year analysis
Common base year analysis The representing of accounting information over multiple years as percentages of amounts in an initial year.