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

Closure : Activity 5.4, A classmate mixes 2 drops of red food coloring for ...

A classmate mixes 2 drops of red food coloring for every 4 drops of blue food coloring. Create a ratio table with 5 entries to represent this situation. Write the entries of the ra

Probability, Ratio of successes in 5 independent trials to the probability ...

Ratio of successes in 5 independent trials to the probability of successes in two independent trials is 1/4. What is the probability of 4 successes in 6 independent trials?

Approximating solutions to equations newtons method, Approximating solution...

Approximating solutions to equations : In this section we will look at a method for approximating solutions to equations. We all know that equations have to be solved on occasion

Give the proofs in mathematics, Give the Proofs in Mathematics ? 1 Two...

Give the Proofs in Mathematics ? 1 Two-column deductive proof Proof: Statements                                                              Reasons * Start with given c

Java program for sorting algorithms, Introduction: In this project, yo...

Introduction: In this project, you will explore a few sorting algorithms. You will also test their efficiency by both timing how long a given sorting operation takes and count

Find the length of the boundary and the area of the shaded, The boundary of...

The boundary of the shaded portion in the adjoining figure consists of our half-circles and two quarter-circles.  Find the length of the boundary and the area of the shaded portion

Explain histogramsin details, Explain Histogramsin details? Another way...

Explain Histogramsin details? Another way to display frequencies is by using a histogram. The following is an example of a histogram using the data from the previous example:

Reduction formulae, Reduction formulae Script for Introduction: ...

Reduction formulae Script for Introduction: First let us know what is meant by reduction formula. In simple words,                 A formula which expressess(or re

Cone - three dimensional spaces, Cone - Three dimensional spaces The be...

Cone - Three dimensional spaces The below equation is the general equation of a cone. X 2 / a 2 + y 2 /b 2 = z 2 /c 2 Here is a diagram of a typical cone. Not

Area of polygons, ho we can find the area of diffrent types of polygon

ho we can find the area of diffrent types of polygon

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