OnPoint Expert Publishes Article on the Use of Advanced Statistical Tools in Valuation and Litigation Matters

OnPoint expert Dr. Dan Werner recently published an article on the use of advanced statistical tools in valuation and litigation matters. The article was published in FVS Consulting Digest, a publication of the American Institute of Certified Public Accountants. The article, titled “Applying regression analysis to valuation and forensic engagements ” introduces the concept of regression analysis and discusses correct implementation alongside several examples in valuation and litigation. For example, the article describes how a regression analysis is a statistical technique used to estimate the relationship between variables and how it can be used to objectively supplement traditional valuation techniques (e.g., the discounted cash flow approach, among others) if sufficient data exists. The article concludes with a discussion of common pitfalls that practitioners should be aware of, for example issues related to the quality of data, omitted variable bias, and extrapolation. When properly applied, regression analysis is a flexible statistical tool that has many tangible applications in forensic and valuation engagements.

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