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

Arc Length and Sector Area, how do i find the diameter of a circle if i hav...

how do i find the diameter of a circle if i have the shaded sectors area of 263.76 and the central angle of that circle is 210 degrees?

Illustrate median with example, Q. Illustrate Median with example? Ans...

Q. Illustrate Median with example? Ans. The median of a data set is the middle value (or the average of the two middle terms if there are an even number of data values) wh

Invoices and trade discounts, Natureland garden center buys lawn mowers tha...

Natureland garden center buys lawn mowers that list for $679.95 less a 30% discount. What is the dollar amount of the discount?

Calculate the area of remaining piece of cardboard, A piece of cardboard in...

A piece of cardboard in the shape of a trapezium ABCD & AB || DE, ∠ BCD = 900, quarter circle BFEC is removed. Given AB = BC = 3.5 cm, DE = 2 cm. Calculate the area of remaining p

Introduction to the normal distribution, Q. Introduction to the Normal Dist...

Q. Introduction to the Normal Distribution? Ans. The Binomial distribution is a model for what might happen in the future for a discrete random variable. The Normal Distri

Show basic trigonometric functions, Q. Show basic Trigonometric Functions? ...

Q. Show basic Trigonometric Functions? Ans. There are six trigonometric functions and they can be defined using a right angle triangle. We first label each side according

Calculus, the limit of f(x) as x approaches 5 is equal to 7. write the defi...

the limit of f(x) as x approaches 5 is equal to 7. write the definition of limit as it applies to f at this point

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