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

Tangents, case 2:when center is not known proof

case 2:when center is not known proof

Assignment Help, I would like to work on Assignment help in Mathematics

I would like to work on Assignment help in Mathematics

Find the perimeter of triangle, The length of the sides of a triangle are 2...

The length of the sides of a triangle are 2x + y/2 , 5 x/3 + y + 1/2  and 2/3 x  + 2y + 5/2. If the triangle is equilateral. Find its perimeter. A ns: 2x + y/2 = 4x + y

Find integer if consecutive even integers is the number 126, The sum of two...

The sum of two consecutive even integers is the number 126. What are the integers? Two consecutive even integers are numbers in sequence, such as 4 and 6 or -30 and -32, that a

Multiply 3 (x + 4) = 3x + 12 to find out the total perimeter, Jake required...

Jake required to find out the perimeter of an equilateral triangle whose sides measure x + 4 cm each. Jake realized that he could multiply 3 (x + 4) = 3x + 12 to find out the total

Demerits and merit-the geometric mean , The geometric mean Merits ...

The geometric mean Merits i.  This makes use of all the values described except while x = 0 or negative ii.   This is the best measure for industrial increase rates

Round 468.235 to the nearest hundredth, Round 468.235 to the nearest hundre...

Round 468.235 to the nearest hundredth ? The hundredths place is the second digit to the right of the decimal point (3). To decide how to round, you must like as at the digit t

Independent & Dependent functions, I am learning this at school today and I...

I am learning this at school today and I started getting confused which one is which, can you help me?

Simplification, if a+1/b=b+1/c=c+1/a then the value of abc is

if a+1/b=b+1/c=c+1/a then the value of abc is

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