Time series and demand forecasting, Financial Management

Assignment Help:

Time Series and Demand Forecasting

 

The process of budgeting in many organizations starts with a forecast of demand for the products in the forthcoming year and the sales forecast which the organization would be capable of achieving. Thus demand and sales forecasts are the most important parameters in budgeting.

Many sophisticated techniques are used in forecasting the demand for products. One of the basic methods used is the Trend Projection Method in which the time series of demand for a product over the past years is studied and the trend observed is projected into the future. If linear trend is to be used, the linear trend relationship of the form Yt = a + bt is obtained either through the visual curve fitting method or the least squares method. Then, with the help of the trend equation, the future demand is forecast.

 


Related Discussions:- Time series and demand forecasting

Cost of capital, what is the cost of capital and advantages of it?

what is the cost of capital and advantages of it?

Swap-linked notes, Swap-Linked Notes: Interest rate swaps are derivativ...

Swap-Linked Notes: Interest rate swaps are derivative products which help in transforming the cash flows of existing debt issues. These are not only useful in covering the exis

Principles of corporate governance, Principles of corporate governance ...

Principles of corporate governance Leadership: Every corporation should be headed by a proficient BOD which should exercise leadership, venture, honesty and judgments in dire

Determine the cost of capital in emerging nation, How can we measure a comp...

How can we measure a company's cost of capital in emerging nations, especially when there is no state bond which we could take as a reference? Although there is no state bond w

Put option, Put Option This is a right which is granted in exchange for...

Put Option This is a right which is granted in exchange for an agreed-upon sum to sell property. Options are mostly used frequently in securities transactions it also used stoc

Aims of financial services authority, Aims of FSA The aim of FSA is to ...

Aims of FSA The aim of FSA is to promote efficient, orderly and fair markets, and to help retail consumers to get a fair deal. In fact, FSA has set out its aims under three bro

Types of fixed income securities or bonds, Types of Bonds 1. Secured ...

Types of Bonds 1. Secured Versus Unsecured Bonds 2.  Senior versus Subordinate Bonds 3.  Registered and Unregistered Bo

Long-term debt finance, The approaches that Blin could accept regarding the...

The approaches that Blin could accept regarding the relative proportions of long- and short-term finance to meet its working capital needs have been described as moderate, conserva

London interbank offered rate (libor), London Interbank Offered Rate (LIBOR...

London Interbank Offered Rate (LIBOR) This is the base lending rate which is charged by banks in the London Eurocurrency market. LIBOR is the European equivalent of the U.S. pr

Annual tax shield, What is the annual tax shield to a firm that has total a...

What is the annual tax shield to a firm that has total assets of $80 million and a net worth of $55 million, if the average interest rate on debt is 8.5% and the marginal tax rate

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