Question

Why is it easier to use regression to predict the behavior of an index versus an individual stock?

Answer 1

Hello, I am BrotherEye

Answer:

Regression models are predictive tools. If you want to use them to predict the behavior of an individual, you must set "behavior" as your dependent variable, and you must have indicators and measures for such. You must also identify your explanatory or independent variable likewise you must have indicators and measures for such.

If you have built your model on the basis of collected data, you will be able to predict the value of behavior given a value of the explanatory variable.

Step-by-step explanation: