No topic Assignment Example | Topics and Well Written Essays - 500 words - 12

No topic - Assignment ExampleThe additive regression equation helps in forecasting the value of sales in the next year. This will be done as follows sales for the seventh year = (1109.1*7) + 1408 = 2517.1. The predicted sales for the seventh year is $ 2,517.The above omen is too general to provide enough information for the production planning. The data that is divided into the different seasons in the year is more informative to the production planning especially for the Riverside Corporation that deals in passing seasonal products (Anderson, 677). Anderson adds that time serial publication help in showing the overall trend of data for condition time intervals (692). Similar scatter diagrams help in predicting the sales for the next year per every twain months as followsThe above analysis shows that the initial value of predicted sales was $ 2517 and was based on the annual nub sales of the year. When data has been broken down into deuce months each year, the prediction takes a different mission (Anderson, 2012). For the next year i.e. seventh year, the predicted sales for the first two months is $ 2815. Sales for the second, third, fourth, fifth and sixth two months are $ 1659, $1240, 701, 797 and 1960 respectively. This information is more useful for production planning than the prediction made using the annual totals. This is because the product in question is seasonal and therefore its demand varies depending on different seasons of the year.Time series analysis is employ in predicting the future values of a variable by the use of result history (Anderson, 682). This is referred to as autoregressive dynamics (Anderson, 680). The basic application is in the application of the linear regression models used above. The models give an equation where values are substituted to obtain the intended prediction. According to Anderson, time series captures the mixed trends that given data assume over a certain period of time (662).