Simple exponential smoothing with a 0.3 is beingused to predict sales of radios at Lowland Appliance.Predictions are made on a monthly basis. After observingAugust radio sales, the forecast for September is 100 radios. a During September, 120 radios are sold. After ob-serving September sales, what is the prediction for Oc-tober radio sales? For November radio sales? b It turns out that June sales were recorded as 10 ra-dios. Actually, however, 100 radios were sold in June. After correcting for this error, what would be the pre-diction for October radio sales?
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
Simple exponential smoothing with a 0.3 is being
used to predict sales of radios at Lowland Appliance.
Predictions are made on a monthly basis. After observing
August radio sales, the forecast for September is 100 radios.
a During September, 120 radios are sold. After ob-
serving September sales, what is the prediction for Oc-
tober radio sales? For November radio sales?
b It turns out that June sales were recorded as 10 ra-
dios. Actually, however, 100 radios were sold in June.
After correcting for this error, what would be the pre-
diction for October radio sales?
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