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

Pre-algebra 8th grade math, 3x3

3x3

the comic book, a) The first comic book is of shakitman was sold in 1938. ...

a) The first comic book is of shakitman was sold in 1938. In 2010, the estimated price for this comic book in good condition was about $500,000. This represented a return of 25 per

Mdm4uc, The number of hours spent studying and achievement on an exam

The number of hours spent studying and achievement on an exam

Quadratic equation, What do we mean by the roots of a quadratic equation ?

What do we mean by the roots of a quadratic equation ?

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.

Probability, Ratio of successes in 5 independent trials to the probability ...

Ratio of successes in 5 independent trials to the probability of successes in two independent trials is 1/4. What is the probability of 4 successes in 6 independent trials?

Vector arithmetic - addition, Vector Arithmetic In this part we need t...

Vector Arithmetic In this part we need to have a brief discussion of vector arithmetic. Addition We will begin with addition of two vectors. Thus, given the vectors a

Solid mensuration, reflection paper in solid mensuration

reflection paper in solid mensuration

Unitarymethod, who discovered and when

who discovered and when

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

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