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

Integration variable, Integration variable : The next topic which we have ...

Integration variable : The next topic which we have to discuss here is the integration variable utilized in the integral. In fact there isn't actually a lot to discuss here other

Three whole divisions, In the National Hockey championship, there are 30 in...

In the National Hockey championship, there are 30 independent ice hockey teams. Every of the teams will play 82 official NHL games every year. Many teams will have to travel from t

Probability, You''ve decided you want a plant for your room. At the gardeni...

You''ve decided you want a plant for your room. At the gardening store, there are 444 different kinds of plants (tulip, fern, cactus, and ficus) and 444 different kinds of pots to

Set theory, A survey of 400 of recently qualified chartered Accountant reve...

A survey of 400 of recently qualified chartered Accountant revealed that 112 joined industry, 120 stated practice & 160 joined the firms of practicing chartered accountants as paid

Integers, students dont retain the topic, hoe to make it easier?

students dont retain the topic, hoe to make it easier?

Construct a venn diagram, In a survey of 85 people this is found that 31 wa...

In a survey of 85 people this is found that 31 want to drink milk 43 like coffee and 39 wish tea.  As well 13 want both milk and tea, 15 like milk & coffee, 20 like tea and coffee

Measures of skewness-measure of central tendency, Measures Of Skewness ...

Measures Of Skewness - These are numerical values such assist in evaluating the degree of deviation of a frequency distribution from the general distribution. - Given are t

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