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

What is current asset, Q. What is Current Asset? Current Asset - ASSET ...

Q. What is Current Asset? Current Asset - ASSET which one can reasonably expect to convert into cash, sell or consume in operations within a single operating cycle or within a

Passive management, In the efficient markets, whether it is sec...

In the efficient markets, whether it is security, equity or fixed-income markets it is believed that the investors use some type of passive strategy in

Managerial finance functions, Managerial Finance Functions Need skilful...

Managerial Finance Functions Need skilful planning, control and execution of the financial activities. There are four significant managerial finance functions. These are as sho

Illustrate about foreign exchange earnings, Q. Illustrate about foreign exc...

Q. Illustrate about foreign exchange earnings? In theory foreign exchange earnings must not be hedged as the chances of an adverse movement are equivalent to those of a favoura

Compute the fair value of the stock, QUESTION Part A Lavista Ltd i...

QUESTION Part A Lavista Ltd is a leading music entertainment company in the country and the stocks of the company are actively traded in the stock exchange. For the year j

Operating cycle, discuss the applicability of operating cycle in poultry in...

discuss the applicability of operating cycle in poultry industry

Venture capitalist, Venture capitalist is an organization in the practice o...

Venture capitalist is an organization in the practice of providing capital to fledgling organization with high growth potential in exchange for equity stakes and/or management cont

Define intermediation, Define intermediation The financial system makes...

Define intermediation The financial system makes it probable for surplus and deficit economic units to come together, exchanging funds for securities, to their mutual advantage

Explain the implicit cost of capital, Explain the Implicit cost of capital ...

Explain the Implicit cost of capital Implicit cost of capital can be defined as the rate of return associated with the best investment opportunity for the firm and its Shareho

State the several goals for the organisation, State the several goals for t...

State the several goals for the organisation As there could be several goals for the organisation, we must try and summarise theorganisational goals in financial terms so that

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