11.106 Price-fixing litigation.
Multiple regression is sometimes used in litigation. In the case of Cargill, Inc. v. Hardin, the prosecution charged that the cash price of wheat was manipulated in violation of the Commodity Exchange Act. In a statistical study conducted for this case, a multiple regression model was constructed to predict the price of wheat using three supply-and-demand explanatory variables.24 Data for 14 years were used to construct the regression equation, and a prediction for the suspect period was computed from this equation. The value of was 0.989.