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

Calculate moving average, Calculate Moving Average The table given bel...

Calculate Moving Average The table given below represents company sales; calculate 3 and 6 monthly moving averages, for data Months Sales

Contravariant vector, Ask question #suppose that components of a contravari...

Ask question #suppose that components of a contravariant vector A^i (for n=3)in the coordinate system (x^1,x^2,...,x^n) are A=x,A=y,A=z.Find the components A^p of the vector in the

Formulas, A house painter uses the formula, c = $110.50 + $39.50h, where c ...

A house painter uses the formula, c = $110.50 + $39.50h, where c is the total cost and h is the number of hours he works, to determine how much he charges his customers. How much s

Lori, rewrite the problem so that the divisor is a whole number...8.5/2.3

rewrite the problem so that the divisor is a whole number...8.5/2.3

Estimate how much did the budget increase, Previous year's budget was 12.5 ...

Previous year's budget was 12.5 million dollars. This year's budget is 14.1 million dollars. How much did the budget increase? Last year's budget must be subtracted from this y

Related rates of differentiation., Related Rates : In this section we wil...

Related Rates : In this section we will discussed for application of implicit differentiation.  For these related rates problems usually it's best to just see some problems an

Help, draw a right angle isosceles triangle with 9 triangles in it

draw a right angle isosceles triangle with 9 triangles in it

5, what is a variable

what is a variable

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