MGMT 2050 Lecture 7: MGMT2050-October24
Document Summary
Using alpha = 1 equals a line of naive approach. Type 2 number in excel and excel will recognize difference and fill in cells for you when you drag it down. Due to violation if residual plot is a parabola, a better model could be used. Remove labels of x axis columns, highlight first 2 columns, hold command, and then highlight revenue column. Estimated value of y (y hat) = 20. 44 + 1. 4812t. 1. 4812 means for each additional unit in time (quarters) our sales or revenue will go up by. 1. 4812 millions of dollars (trend movement we captured). After using regression to predict, highlight 3 columns leaving year and produce line chart. When we don"t have actual data, we use the forecasted data instead. Technique with linear regression (coefficients) and technique with moving average (k value). Make an error column for regression (r) and error column for moving average (ma)