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

Solid mensuration, Find the are of the rectilinear.if it is the difference ...

Find the are of the rectilinear.if it is the difference between to isosceles trapezoid whose corrsponding sides are parallel.

Differential Equation, #i hve two qestion on Differential Equation i need s...

#i hve two qestion on Differential Equation i need solve it..

Permutation, A train goin from delhi to jaipur stops at 7 intermediate stat...

A train goin from delhi to jaipur stops at 7 intermediate stations. 5 persons enter the train during the journey with 5 difefrent tickets of same class . How mant different set of

Geometry, the segments shown could form a triangle

the segments shown could form a triangle

Quantitative techniques, mentioning the type of business you could start an...

mentioning the type of business you could start and the location of your business, use the steps of quantitative methods for decision making narrating them one by one in the applic

Christie paid 5% sales tax purchase how much did she spend, Christie purcha...

Christie purchased a scarf marked $15.50 and gloves marked $5.50. Both items were on sale for 20% off the marked price. Christie paid 5% sales tax on her purchase. How much did she

Amy purchased 6 books how much did the books cost altogether, Amy purchased...

Amy purchased 6 books at $4.79 each. How much did the books cost altogether? Multiply 6 by $4.79; 6 × $4.79 = $28.74.

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