30 Jul Linear Regression And Simple Exponential Smoothing (SES) Forecasting
you are given store visits data and sales data. You are advised that there is a positive relationship (or correlation) between the visits for any given month and the sales for that month. Your task is to use linear regression; matching the first 12 months of visits with 12 months of sales. Then, you use the linear equation to forecast sales for Year 2. Listed below are the “actual sales” numbers for Year 2, so that you can compare the sales given by the Linear Regression (LR) equation with the actual (known) sales for Year 2.
– See attached for Actual Sales Data for Year 2
– Complete the Year 2 analysis based on your forecast and compare the actual sales on the case included.
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