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

How to calculate probability of event, Q. How to calculate Probability of e...

Q. How to calculate Probability of event? Ans. What chance do I have to toss the coin and get a head? You might think 50-50, 50%. What about tossing it 5 times and getting

Elimination technique of linear equations, What is the Elimination techniqu...

What is the Elimination technique of Linear Equations?

Standard basis vectors -application of scalar multiplication, Standard Basi...

Standard Basis Vectors Revisited In the preceding section we introduced the idea of standard basis vectors with no really discussing why they were significant.  We can now do

Find the volume of ice cream cone, An ice-cream cone has a hemispherical to...

An ice-cream cone has a hemispherical top. If the height of the cone is 9 cm and base radius is 2.5 cm, find the volume of ice cream cone.

FRACTION, HOW TO ADD MIXED FRACTION

HOW TO ADD MIXED FRACTION

Find the Regular Grammar for the following Regular Expressio, Find the Regu...

Find the Regular Grammar for the following Regular Expression: a(a+b)*(ab*+ba*)b.

Shares and dividends, suresh invested rs.1080 in shares of face value rs.50...

suresh invested rs.1080 in shares of face value rs.50 at rs.54.After receiving dividend on them at 8% he sold them at 52.In each of the transaction he paid 2 % brokerage.Hpw much d

Determine the measure of a base angle, The angle calculate of the base angl...

The angle calculate of the base angles of an isosceles triangle are shown by x and the vertex angle is 3x + 10. Determine the measure of a base angle. a. 112° b. 42.5° c.

How is probability distribution of random variable construct, How is the pr...

How is the probability distribution of a random variable constructed? Usually, the past behavior of the variable is studied and the frequency distribution of the past data is form

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