FVC2008. Revenue Estimation Case Study: Regression

The starting point for most lost profits damages calculations is the estimation of revenues that would have been earned in the "but-for" world. Tools to make these estimates include the before-and-after method, the yardstick method, and others. This session will explore the use of regression (and similar statistical analyses) in estimating but-for revenues. The discussion will address, at a summary level what a regression does and represents, when regression is and is not well suited to the task, concerns and how to address them, a review of relevant case law, and a case study to show how to implement and perform regression analysis (e.g., which software packages are available, and the limitations of some of them).

Learning Objectives:

• Discover what regression analysis is and its pros and cons in application
• Identify how to perform a simple regression analysis and use it in a damages calculation