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

What is approximation, approximate value is the precise or the accurate val...

approximate value is the precise or the accurate value which is measured to the actual value.., approximation is how close the measured value is to the actual value , for example

..Job, Eddie mkes $15.75 per hour. Estimate how much Eddie will make per ye...

Eddie mkes $15.75 per hour. Estimate how much Eddie will make per year if he works 40 hours per week and 50 weeks per year.

Shares and dividend, by purchasing rs.10 shares for rs.40 each mala gets 5%...

by purchasing rs.10 shares for rs.40 each mala gets 5% income on her investment. what rate of dividend is the company paying? what will be the amount of dividend if she buys 120 sh

Example of fractional equations, Example of Fractional Equations: Exa...

Example of Fractional Equations: Example: Solve the fractional equation (3x +8)/x +5 =0 Solution: Multiply both sides of the equation by the LCD (x). (x) ((3x

#titlenooo.., hi how are you

hi how are you

Maths, whats 100 + 90 - 6

whats 100 + 90 - 6

History of Mathematics, What are the key features of Greek Mathematics? How...

What are the key features of Greek Mathematics? How does the emphasis on proof affect the development of Greek Mathematics?

Integration, Integration of square root of sin

Integration of square root of sin

Group of symmetries, what is rotation

what is rotation

Geometry, which kind of triangle has no congruent sides ?

which kind of triangle has no congruent sides ?

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