Operations Management Assignment

Question 4(b)

Solution

The sale value for the bound 15 lav be calculated using the least squ bes technique. Equations to calculate the variables are;

Yt = a + bt - (1.0) where Yt= computed value of the variable to be
predicted i.e. Sales value
a = y-axis intercept
b = slope of trend line
t = the unconditional variable i.e. period (t)

b = Σ Ytt – nŤ Ŷt - (2.0) Ŷt = average/ hateful of the gross revenue values
Σ t2 – nŤ2 Ť = average/mean of the independent variable/period
n = number of periods

a = Yt – bt - (3.0)

First maltreat is to calculate the various variables (t2, Ytt) in the equation from the given sales data.



This can be shown on the table below;

| terminus (t) |Sales (Yt) |t × Yt |t2 |
|1 |32 |32 |1 |
|2 |28 |56 |4 |
|3 |30 |90 |9 |
|4 |34 |136 |16 |
|5 |30 |150 |25 |
|6 |43 |258 |36 |
|7 |36 |252...If you want to get a full essay, order it on our website: Orderessay



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