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).
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