Ace the 2025 CGFM Exam – Turbocharge Your Path to Financial Mastery!

Question: 1 / 875

Which analysis tool is beneficial in identifying problematic trends within multiple variables?

Variance Analysis

Regression Analysis

Regression Analysis is particularly beneficial for identifying problematic trends within multiple variables because it allows for the examination of relationships between a dependent variable and one or more independent variables. This analytical method can help determine the strength and direction of these relationships, revealing how changes in the independent variables might affect the dependent variable.

In practice, regression analysis can be utilized to forecast outcomes and predictors, making it a powerful tool for insights into trends and potential problems. For example, if an organization notices declining sales, regression analysis could help identify various influencing factors such as price changes, marketing efforts, or economic conditions, providing a clearer understanding of which variables contribute to the issue and how they might be adjusted to improve performance.

In contrast, variance analysis focuses on understanding the difference between planned and actual performance, SWOT analysis is a strategic planning tool that assesses strengths, weaknesses, opportunities, and threats, and a Work Breakdown Structure is a project management tool that breaks down projects into manageable sections. While all these tools serve important functions in their respective areas, they do not analyze trends across multiple variables in the same comprehensive manner as regression analysis does.

Get further explanation with Examzify DeepDiveBeta

SWOT Analysis

Work Breakdown Structure

Next Question

Report this question

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy