As a finance major I wasn’t sure why I would need to know much about information systems but I found out that information systems is a course that applies to all aspects of business and beyond. One of the projects I worked on for class involved excel and financial portfolios. For this project I had to make an excel spreadsheet that compared Panera Bread to its competitors from October 2015- March 17th . I looked at closing price, variables and use regression analysis in order to get a better understanding of what I was looking at.
The regression analysis part was interesting to look at and interrupt. In a class I took in the past semester, business statistics, we used regression analysis for three case studies and I didn’t see how it would relate to finance. But for the project everything came full circle for me. I was able to interrupt my R Square value and my P- values as well.
Above is a screenshot of the numbers my regression analysis produced. Once the regression analysis tool was used I took a look at the R2 number first. The reason I did this was because the result in the R2 space, because R2 is an overall measure of the goodness of the model. Since it is measured on a scale from 0-1, 1 being the best, I know that because I got .6177 my model is a good model. After I looked at that, I looked at the variables and P-value in order to see if the specific variables would help to predict the price or if it would not have any effect on it at all. I was able to do this by seeing if the P-value result was 0.05 or less. If it was lower than 0.05 then that variable would have a significant impact on the price of the stock. Being able to see this allowed me to think as a financial analyst and I was able to see how stock prices were impacted by certain variables.
But the coolest part was using excel to predict the future success of Panera Bread stock and the model I created told me if I should buy, sell or hold the stock. My model wasn’t 100% but it predicted a good amount of truths. I plan on going back and changing it to make it more accurate and stay updated on stocks other than Panera. I have provided a screenshot below of what it looks like.