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

Introducing counting, INTRODUCING COUNTING : From what you studied previou...

INTRODUCING COUNTING : From what you studied previous study, you know what it means to count. You would also agree that rote learning of number names does not always mean that the

Relation and functions, Prove that if f and g are functions, then f interse...

Prove that if f and g are functions, then f intersect g is a function by showing f intersect g = glA A={x:g(x)=f(x)}

Prisms, i have to find surface,lateral,and volume

i have to find surface,lateral,and volume

Division, Before taking up division of polynomials, let us acquaint...

Before taking up division of polynomials, let us acquaint ourselves with some basics. Suppose we are asked to divide 16 by 2. We know that on dividing 16 by

Reduction of order - fundamental set of solutions, Given that 2t 2 y′′ ...

Given that 2t 2 y′′ + ty′ - 3 y = 0 Show that this given solution are form a fundamental set of solutions for the differential equation? Solution The two solutions f

Interpretation, Interpretation A high value of r as +0.9 or - 0...

Interpretation A high value of r as +0.9 or - 0.9 only shows a strong association among the two variables but doesn't imply that there is a causal relationship that is

BOUNDARY VALUE PROBLEM, Ut=Uxx+A exp(-bx) u(x,0)=A/b^2(1-exp(-bx)) u(0,t)=0...

Ut=Uxx+A exp(-bx) u(x,0)=A/b^2(1-exp(-bx)) u(0,t)=0 u(1,t)=-A/b^2 exp(-b)

Power regression, how can i solve a multi variable power regression equatio...

how can i solve a multi variable power regression equation..? EX: y=a*(x1^b)*(x2^c).... i need to solve with 4 variable....

Explain comparing fractions with example, Explain Comparing Fractions with ...

Explain Comparing Fractions with example? If fractions are not equivalent, how do you figure out which one is larger? Comparing fractions involves finding the least common

Assumptions and application of t distribution, Assumptions and Application ...

Assumptions and Application of T Distribution Assumptions of t distribution 1. The sample observations are random 2. Samples are drawn from general distribution 3.

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