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

Algebra, (a+b+c)2=

(a+b+c)2=

Infinite, why cant we find the value of 1 upon zero

why cant we find the value of 1 upon zero

Help, how long would it take if a submarine if it goes 3 feet per minute to...

how long would it take if a submarine if it goes 3 feet per minute to get to 20000 answer

Statistics, How do I choose a distribution test for a sample size of 60? Pr...

How do I choose a distribution test for a sample size of 60? Probability of rolling a 4 on a six sided die.

Prove which divide these sides in the ratio 2: 1, In a right triangle ABC, ...

In a right triangle ABC, right angled at C, P and Q are points of the sides CA and CB respectively, which divide these sides in the ratio 2: 1. Prove that 9AQ 2 = 9AC 2 +4BC 2

Polar coordinates, THE CURVE C HAS POLAR EQUATION R=[X^1/2][E^X^2/PI]. WHER...

THE CURVE C HAS POLAR EQUATION R=[X^1/2][E^X^2/PI]. WHERE X IS GREATER THAN OR EQUAL TO 0 BUT LESS THAN OR EQUAL TO PI. THE AREA OF THE FINITE REGION BOUNDED BY C AND THE LINE X EQ

Working definition of function, A function is an equation for which any x w...

A function is an equation for which any x which can be plugged into the equation will yield accurately one y out of the equation. There it is. i.e. the definition of functions w

Estimate the last month sales increased through only 1/2%, Sales increased ...

Sales increased through only 1/2% last month. If the sales from the previous month were $152,850, what were last month's sales? Multiply through the decimal equivalent of 1/2 %

Analysis and optimization, 1. In an in finite horizon capital/consumption m...

1. In an in finite horizon capital/consumption model, if kt and ct are the capital stock and consumption at time t, we have f(kt) = ct+kt+1 for t ≥ 0 where f is a given production

Permutation, HOW MANY number laying between 100 and 1000 can be formed with...

HOW MANY number laying between 100 and 1000 can be formed with 0,1,2,3,4,5 and also divisible by 5 with distinct digit

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages