Professional Documents
Culture Documents
Demand
Estimation and
Forecasting
Chapter Outline
Regression analysis
Limitation of regression analysis
The importance of business forecasting
Prerequisites of a good forecast
Forecasting techniques
Y: dependent variable
a: constant value, y-intercept
Xn: independent variables, used to explain Y
bn: regression coefficients (measure impact
of independent variables)
b = estimated coefficient
Seb = standard error of estimated
coefficient
Challenges
Multicollinearity
Autocorrelation
Approaches to forecasting
consumer intentions
inventories and sales expectations