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

Homework, joey asked 30 randomly selected students if they drank milk, juic...

joey asked 30 randomly selected students if they drank milk, juice, or bottled water with their lunch. He found that 9 drank milk, 16 drank juice, and 5 drank bottled water. If the

How much wrapping paper will needed, Barbara is packing a wedding gift that...

Barbara is packing a wedding gift that is contained within a rectangular box 20 by 18 by 4 in. How much wrapping paper will she require? a. 512 in 2 b. 1,440 in 2 c. 1,0

Properties of logarithms, Properties of Logarithms 1. log a x...

Properties of Logarithms 1. log a xy = log a x + log a y 2.  = log a x - log a y 3. log a x n   = n log

Parabola, write the equation of parabola of vertex(2,-3)and focus(_1,1)

write the equation of parabola of vertex(2,-3)and focus(_1,1)

Find the co ordinates of p such that ap =3/7 ab and p lies, If A & B are (-...

If A & B are (-2,-2) and (2,-4) respectively, find the co ordinates of P such that AP =3/7 AB and P lies on the line segment AB.

Play and learn maths, PLAY AND LEARN :  Children can learn many basic math...

PLAY AND LEARN :  Children can learn many basic mathematical concepts through games. They enjoy Mathematical concepts can be playing within familiar contexts. Their games also gen

Recursively, Let a 0 , a 1 ::: be the series recursively defined by a 0 =...

Let a 0 , a 1 ::: be the series recursively defined by a 0 = 1, and an = 3 + a n-1 for n ≥ 1. (a) Compute a 1 , a 2 , a 3 and a 4 . (b) Compute a formula for an, n ≥ 0.

Pressure and vorticity distributions, Normal 0 false false ...

Normal 0 false false false EN-IN X-NONE X-NONE

Rolles theorem, Rolle's Theorem  Assume f(x) is a function which satis...

Rolle's Theorem  Assume f(x) is a function which satisfies all of the following. 1. f(x) is continuous in the closed interval [a,b]. 2. f(x) is differentiable in the ope

Alphabet is any arrangement , A word on an alphabet is any arrangement of t...

A word on an alphabet is any arrangement of the letters in the alphabet. For example,ODD, DOD, DOO, DDD are three-letter words on the alphabet {D,O}. How many four-letter words are

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