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

Partitioning -types of word problems related to subtraction, Partitioning ...

Partitioning - an action of taking away or removing some objects, and finding out how many remain. (e.g., there were 15 toffees in this container, and 10 have been eaten. How many

Stages of multiplication from the beginning, What is our aim when teaching ...

What is our aim when teaching children multiplication? Firstly they should be able to judge which situations they need to multiply in, and the numbers that are to be multiplied sec

Set theory, how to prove Decidability Theorem of Logic

how to prove Decidability Theorem of Logic

Share and dividend, #a invests Rs 15000IN COMPANY PAYING 10%WHEN Rs100 SHAR...

#a invests Rs 15000IN COMPANY PAYING 10%WHEN Rs100 SHARE IS SOLD AT A PREMIUM OF Rs 20 after a yearASOLD SHARES AT Rs80 EACHAND INVESTEDPROCEEDS IN Rs75SHARES SELLING AT Rs 100 WZI

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).

Marketing orientation, what marketing orientation is kelloggs influenced by...

what marketing orientation is kelloggs influenced by?why do you think kelloggs use this approach?

Addition, 5289441+4684612131

5289441+4684612131

Find where the breakdown occurred and his original speed, A cyclist, after ...

A cyclist, after riding a certain distance, stopped for half an hour to repair his bicycle, after which he completes the whole journey of 30km at half speed in 5 hours. If the bre

Theory of indices, In algebra knowing that 2 3 = 8 is not sufficient...

In algebra knowing that 2 3 = 8 is not sufficient. Equally important to know is what would be the result if quantities like 2 3 . 2 -4 . 2 6 or 3 7 / 3 2

Fractions, If i worked 7 1/3 hours and planted 11 trees how many hours did ...

If i worked 7 1/3 hours and planted 11 trees how many hours did it take to plant each tree?

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages