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

Find the evaluation of angle, In parallelogram ABCD, ∠A = 5x + 2 and ∠C = 6...

In parallelogram ABCD, ∠A = 5x + 2 and ∠C = 6x - 4. Find the evaluation of ∠A. a. 32° b. 6° c. 84.7° d. 44° a. Opposite angles of a parallelogram are same in measu

Explain the graph of an equation and graph of an inequality, Explain The Gr...

Explain The Graph of an Equation and The Graph of an Inequality ? Here is the graph of the equation y = x. Notice that for every point along the line shown in the graph, the y

Construction , construct of tangents a circle from an external point when ...

construct of tangents a circle from an external point when its centre is not known

Geometyr, Lines EF and GH are graphed on this coordinate plane. Which point...

Lines EF and GH are graphed on this coordinate plane. Which point is the intersection of lines EF and GH?

Math on a spot, compare: 643,251: 633,512: 633,893. The answer is 633,512.

compare: 643,251: 633,512: 633,893. The answer is 633,512.

Hypothesis testing, Hypothesis Testing Definition of Hypothesis Testing...

Hypothesis Testing Definition of Hypothesis Testing - A hypothesis is a claim or an opinion about an issue or item.  Hence it has to be tested statistically in order to esta

Arthimetic progressions, what is the ratio of sides of a right angle triang...

what is the ratio of sides of a right angle triangle which are in A.P

My daugther needs help, my daughter is having trouble with math she cant un...

my daughter is having trouble with math she cant understand why please help us

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