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

Where is the bus in relation to the hotel, A bus picks up a group of touris...

A bus picks up a group of tourists at a hotel. The sightseeing bus travels 2 blocks north, 2 blocks east, 1 block south, 2 blocks east, and 1 block south. Where is the bus in relat

What is the maximum number calories which consume from fats, Josephine is o...

Josephine is on an 1,800 calorie per day diet. She tries to remain her intake of fat to no more than 30% of her overall calories. Based on an 1,800 calorie a day diet, what is the

Theory Of planor curve, Related problems,working rule,defnitions

Related problems,working rule,defnitions

Complex number, The points A,B,C and D represent the numbers Z1,Z2,Z3 and Z...

The points A,B,C and D represent the numbers Z1,Z2,Z3 and Z4.ABCD is rhombus;AC=2BD.if Z2=2+i ,Z4=1-2i,find Z1 and Z3 Ans) POI of diagonals: (3-i)/2. Using concept of rotation:

Solving decimal equations, The distance around a square photograph is 12.8 ...

The distance around a square photograph is 12.8 centimeters. What is the langth of each side of the fotograph?

Trigonometry, why it is hard?

why it is hard?

Faltings theorem, What is Faltings Theorem? Explain Faltings Theorem

What is Faltings Theorem? Explain Faltings Theorem

Operations research, Explain Analytical Models in Operations Research with ...

Explain Analytical Models in Operations Research with Application

Normal approximation to binomial to approximate probability, A certain flig...

A certain flight arrives on time 78% of the time. Suppose 1000 flights are randomly selected. Use the normal approximation to the binomial to approximate the probability that a)

Direction fields, steps to draw direction or slope fields

steps to draw direction or slope fields

Write Your Message!

Name

Email id

Message

Verfication Code

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!

Submit Assignment

User Account

All Pages