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

2+2=5, How could 2+2 will be Equal to 5

How could 2+2 will be Equal to 5

Math help, What fraction of the full price will you pay for 2 shirts? 3 4 ...

What fraction of the full price will you pay for 2 shirts? 3 4 11 2 $45.001 2 .

Numercial analysis and computer techniques, write FORTRAN programme to gene...

write FORTRAN programme to generate prime numbers between 1 and 100

Greens function, construct the green''s function that satisfies dG''''-(2x+...

construct the green''s function that satisfies dG''''-(2x+1)G''+(x+1)G=delta(x-s), G(0,s)=G(1,s)=0

Mean and standard deviation , A professor is interested in decisive if atte...

A professor is interested in decisive if attending college influences the level at which an individual cooperates with the police. The professor is not sure  if attending college w

Word problem, Twins Olivia and Chelsea and their friend Rylee were celebrat...

Twins Olivia and Chelsea and their friend Rylee were celebrating their fourteenth birthdays with a party at the beach. The first fun activity was water games. As Nicole arrived, sh

Stratified sampling, Stratified sampling In stratified sampling case t...

Stratified sampling In stratified sampling case the population is divided into groups in such a way that units in each group are as same as possible in a process called strati

Classification-developing pre-number concepts, Classification :  As you kn...

Classification :  As you know, classification (also called grouping) involves putting together things that have some characteristic in common. We can say that a child is able to c

What is the value of tan in terms of sin, What is the value of tan? in term...

What is the value of tan? in terms of sin?. Ans:    Tan ? = S i n ?/ C os ? Tan ? = S i n ? / √1 - S i n   2?

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