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

Subjective probability, Subjective Probability Probability may be de...

Subjective Probability Probability may be determined by a personal statement of how likely an outcome is in a single trial or repetition of the same experiment. Since sub

Find the value of given equations in polynomial , If α & ß are the zeroes ...

If α & ß are the zeroes of the polynomial 2x 2 - 4x + 5, then find the value of a.α 2 + ß 2   b. 1/ α + 1/ ß  c. (α - ß) 2 d. 1/α 2 + 1/ß 2    e.  α 3 + ß 3 (Ans:-1, 4/5 ,-6,

SAT question, In a certain class, one half of the male students and two thi...

In a certain class, one half of the male students and two thirds of the female students speak French. If there are three fourths as many girls as boys in the class. What fraction o

Explain linear equations, Explain Linear Equations ? Set of ordered pai...

Explain Linear Equations ? Set of ordered pairs of numbers A set is an undefined term and we describe it as a "well defined" collection. We use the symbol "{ }" to denote "a se

How much wrapping paper will needed, Barbara is packing a wedding gift that...

Barbara is packing a wedding gift that is contained within a rectangular box 20 by 18 by 4 in. How much wrapping paper will she require? a. 512 in 2 b. 1,440 in 2 c. 1,0

Tchebyshev distance, Tchebyshev Distance (Maximum Travel Distance per Trip ...

Tchebyshev Distance (Maximum Travel Distance per Trip Using Rectilinear Distance): It can be calculated by using following formula: d(X, Pi) = max{|x - ai|, |y - bi|} (Source

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