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

Find a power series representation for the function, Find a power series re...

Find a power series representation for the subsequent function and find out its interval of convergence. g (x) = 1/1+x 3 Solution What we require to do here is to rela

find out the dimensions which will minimize, We desire to construct a box ...

We desire to construct a box whose base length is three times the base width. The material utilized to build the top & bottom cost $10/ft 2 and the material utilized to build the

Irregular shapes and solids, find the area of the irregular shape 2cm 4cm 4...

find the area of the irregular shape 2cm 4cm 4cm 2cm 5cm 5cm

Determine how maximum revenue with transportation model, The government is...

The government is auctioning off oil leases at two sites. At each site, 100,000 acres of land are to be auctioned. Cliff Ewing, Blake Barnes and Alexis Pickens are bidding for the

Integration, Integration of square root of sin

Integration of square root of sin

SHARES AND DIVIDEND, i am a student of class 10 and need help for making my...

i am a student of class 10 and need help for making my project on shares and dividend

Factoring trinomial, what is the factor of the trinomial 2x2-7x-4

what is the factor of the trinomial 2x2-7x-4

Trigonometry, show that, sin 90 degree = 2 cos 45 degree sin 45 degree

show that, sin 90 degree = 2 cos 45 degree sin 45 degree

Mode, What is the median for this problem (55+75+85+100+100)

What is the median for this problem (55+75+85+100+100)

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