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

What is 19% of 26, What is 19% of 26? To ?nd out 19% of 26, multiply 26...

What is 19% of 26? To ?nd out 19% of 26, multiply 26 through the decimal equivalent of 19% (0.19); 26 × 0.19 = 4.94.

Percentage, At an office, the manager earns 40% more than a first year empl...

At an office, the manager earns 40% more than a first year employees. The employee earns what fraction of the manager earnings?

Arthemetic progreession, ball are arranged in rows to form an equilateral t...

ball are arranged in rows to form an equilateral triangle .the firs row consists of one abll,the second of two balls,and so on.If 669 more balls are added,then all the balls canbe

What is 2^5, What is 2 5 ? 2 5 = 2 ×2 ×2 ×2 ×2 = 32

What is 2 5 ? 2 5 = 2 ×2 ×2 ×2 ×2 = 32

Operations research, scope of operation research and its limitations

scope of operation research and its limitations

Rounding fractions and mixed number, rouding each number to the nearest hal...

rouding each number to the nearest half

Ratio, ther are 162 student in a school.20 of them are girls .how many are ...

ther are 162 student in a school.20 of them are girls .how many are boy

Detemine the amplitude of trigonometric function, 1. Consider the trigonome...

1. Consider the trigonometric function f(t) = (a) What is the amplitude of f(t)? (b) What is the period of f(t)? (c) What are the maximum and minimum values attained by

Fractions and equations and illustration, if Mr.Ibias oredered a rectangula...

if Mr.Ibias oredered a rectangular pizza and he wants 2/3 of the pizza to be pepperoni and 1/2 of the pizza with pineapple draw and label the pizza with toppings explain your think

Matrices by simultaneous questions, 3x+2y=6 x-y=7

3x+2y=6 x-y=7

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