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

How much interest will she have made after 4 years, Celine deposited $505 i...

Celine deposited $505 into her savings account. If the interest rate of the account is 5% per year, how much interest will she have made after 4 years? Use the formula F = 9/5

Calculate the value of the following limits, Calculate the value of the fol...

Calculate the value of the following limits. Solution To remind us what this function such as following the graph. hence, we can see that if we reside to the r

Fraccions, multiply 9/19 times 95/7

multiply 9/19 times 95/7

Linear differential equations, The first particular case of first order dif...

The first particular case of first order differential equations which we will seem is the linear first order differential equation. In this section, unlike many of the first order

Find the number of males and females in the village, The population of the ...

The population of the village is 5000.  If in a year, the number of males were to increase by 5% and that of a female by 3% annually, the population would grow to 5202 at the end o

Course work2 , (b) The arity of an operator in propositional logic is the n...

(b) The arity of an operator in propositional logic is the number of propositional variables that it acts on – for example, binary operations (e.g, AND, OR, XOR…) act on two propo

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

I would like to work on Assignment help in Mathematics

Derivatives with chain rule, Chain Rule : We've seen many derivatives...

Chain Rule : We've seen many derivatives.  However, they have all been functions similar to the following kinds of functions. R ( z ) = √z      f (t ) = t 50

Error analysis: describle and correct the error in plotting, to plot (5,-4)...

to plot (5,-4), start at (0,0) and move 5 units left and 4 units down

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