Projects

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.

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My excel table showing that data that I used for the project

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.

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Regression analysis

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.

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Stock predicting tool

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.

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