Forecasting by using least squares, Mathematics

Assignment Help:

Forecasting By Using Least Squares

Data have been kept of sales over the last seven years

Year	1	2	3	4	5	6	7
Sales (in '000 units	14	17	15	23	18	22	27
It is required to forecast the sales for the 8^th year

Solution

Years (x)	Sales (y)	xy	x²
1	14	14	1
2	17	34	4
3	15	45	9
4	23	92	16
5	18	90	25
6	22	132	36
7	27	189	49
Σx=28	Σy = 136	Σxy=596	Σx²= 140

136 = 7a + 28b

596 = 28a + 140b

∴b = 1.86

And substituting in one of the equations we acquire

a = 12

∴ Regression line = y = 12 + 1.86x

Or, Sales in ('000s of units) = 12.00 + 1.86 (no of years)

We utilize this expression for forecasting, for 8^th year sales = 12 + 1.86 (8)

=26.88 that is 26,888 units.

Related Discussions:- Forecasting by using least squares

Faltings theorem, What is Faltings Theorem? Explain Faltings Theorem

What is Faltings Theorem? Explain Faltings Theorem

Formula to computing how much lumber to buy, Audrey is creating a increased...

Audrey is creating a increased flowerbed which is 4.5 ft by 4.5 ft. She requires computing how much lumber to buy. If she requires knowing the distance around the flowerbed, which

Rounding Decimals, how do you round a decimal

how do you round a decimal

Focal chord of the parabola, show that the circle described on any focal c...

show that the circle described on any focal chord of the parabola touches the directrix

Geometry, finding missing values from given triangle diagra m..

finding missing values from given triangle diagra m..

Arithmetic progression., 1.If a+b=2b and ab+cd+ad=3bc,prove that a,b,c,d ar...

1.If a+b=2b and ab+cd+ad=3bc,prove that a,b,c,d are in A.P 2.The nth term of an A.P is an+b.Find the sum of the series upto n terms.

Rational exponents, Now we have to start looking at more complicated expone...

Now we have to start looking at more complicated exponents. In this section we are going to be evaluating rational exponents. i.e. exponents in the form

Algorithm, algorithm of cosx

algorithm of cosx

Circle, a wheel revolves 360 deegre revolution in one minute .Find how many...

a wheel revolves 360 deegre revolution in one minute .Find how many radians will the wheel subtend in one second

Solving two step equations, how do you solve 45 = n/5 = 5

how do you solve 45 = n/5 = 5

Write Your Message!

Name

Email id

Message

Verfication Code

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages