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 8th 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 8th year sales = 12 + 1.86 (8)

=26.88 that is 26,888 units.


Related Discussions:- Forecasting by using least squares

Determine how much more time it will take to reach the base, A man on a top...

A man on a top of a tower observes a truck at an angle of depression α where tanα = 1/√5 and sees that it is moving  towards the base of the tower. Ten minutes later, the angle of

What is minimum spanning tree, What is minimum spanning tree?  Determine a ...

What is minimum spanning tree?  Determine a railway network of minimal cost for the cities in the following graph using Kruskal's algorithm. Ans: Minimum spanning tree in a con

Determine fog and gof, Let g be a function from the set G = {1,2,3,...34,35...

Let g be a function from the set G = {1,2,3,...34,35,36).  Let f be a function from the set F = {1,2,3,...34,35,36}.  Set G  and F contain 36 identical elements (a - z and 0 - 9).

Find the interval of validity, Solve the subsequent IVP and find the interv...

Solve the subsequent IVP and find the interval of validity for the solution. y' + (4/x) y = x 3 y 2 ,       y(2) = - 1,  x > 0 Solution Thus, the first thing that we re

Volume, Rajun uses 2/3 of a carton of milk to make a pancake. The volume of...

Rajun uses 2/3 of a carton of milk to make a pancake. The volume of milk he uses is 800ml. calculate the volume, in l, of a milk in carton?

Types of relation, Relations in a Set: Let consider R be a relation fro...

Relations in a Set: Let consider R be a relation from A to B. If B = A, then R is known as a relation in A. Thus relation in a set A is a subset of A ΧA. Identity Relation:

Hierarchical structures-how mathematical ideas grow, Hierarchical Structure...

Hierarchical Structures :  As the abstractions from concrete objects and materials become more and more general, they represent wider and wider ideas. If we put down each step of

Calculate the time average of kinetic energy of the planet, (1) If the coef...

(1) If the coefficient of friction between a box and the bed of a truck is m , What is the maximum acceleration with which the truck can climb a hill, making an angle q with the ho

Find a quadratic polynomial having a and ß, If α,β are the zeros of a Quadr...

If α,β are the zeros of a Quadratic polynomial such that α + β = 24, α - β = 8. Find a Quadratic polynomial having α and β as its zeros.

Word problems fraction, Savannah''s mom made a fruit smoothie that tasted s...

Savannah''s mom made a fruit smoothie that tasted so good. She put in one-fourth of a cup of diced apples, one-fifth of a cup of sliced oranges, along with half of a cup of yogurt

Write Your Message!

Captcha
Free Assignment Quote

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd