(c) Suitable development formula: Least Square Method: It is a mathematical procedure for fitting a line to a set of observed data points in such a manner that the sum of the squared differences between the calculated and observed value is minimized. This technique is used to find a trend line which best fit the available data. This trend is then used to project the dependant variable in the future.
Lower than this procedure, a love is made between the number recommended (situated adjustable) together with separate parameters (explanatory details) including money, price of the good, rates off associated items an such like
This technique is really prominent because it’s easy and inexpensive. Furthermore, this new pattern approach brings quite credible estimates out-of future demand
The big limit with the experience it can not be put where pattern try cyclic which have evident flipping items out-of troughs and you will peaks. Read More »