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

Parallelograns, Find x and y in each paarallelogram.

Find x and y in each paarallelogram.

Integration, Integration of square root of sin

Integration of square root of sin

Quadratic Functions, Can you please explain what Quadratic functions are?

Can you please explain what Quadratic functions are?

Metric analysis, How to conversion into metric

How to conversion into metric

Solve factors for given equations, 1/a+b+x =1/a+1/b+1/x a+b ≠ 0 ...

1/a+b+x =1/a+1/b+1/x a+b ≠ 0 Ans: 1/a+b+x =1/a+1/b+1/x => 1/a+b+x -1/x = +1/a +1/b ⇒ x - ( a + b + x )/ x ( a + b + x ) = + a + b/ ab ⇒

Example of normal distribution, The mathematics results of 20 first-year un...

The mathematics results of 20 first-year university students are given, together with their results of their performances in the year 12 semester Test and Final Assignment:

Quadratic Equation, Short Cuts for solving quadratic equations

Short Cuts for solving quadratic equations

Houghton Mifflin math book 3rd grade, i need help with classifing quadrilat...

i need help with classifing quadrilaterals

Tangents with parametric equations - polar coordinates, Tangents with Param...

Tangents with Parametric Equations In this part we want to find out the tangent lines to the parametric equations given by X= f (t) Y = g (t) To do this let's first r

Arc length with polar coordinates, Arc Length with Polar Coordinates H...

Arc Length with Polar Coordinates Here we need to move into the applications of integrals and how we do them in terms of polar coordinates. In this part we will look at the a

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