The present paper "Statistical Forecasting in Business" dwells on the concept of forecasting in business. According to Lapide, business forecasting models which include moving averages, simple averages, exponential smoothing and some decomposition…
Download file to see previous pages...
On the other hand, regression analysis in business forecasting answers the question “by how much”. In this regard, both simple and multiple regression analysis shows the relationship between the dependent variable against the independent variables (IV: within subject factors e.g. products differentiation, product prices etc.). A business normally comes up with a model based on its operations and then using the available historical data formulates a regression equation which can be used able to predict the future values. An example of a regression model is shown below;SV = β0 + β1P + β2M+…+ βnXi In this model, β’s are the coefficients of the various independent variables and which signifies the amount of dependent variable change (in this case sales volumes), either positive or negative, once one of the independent variable’s changes by a single unit. P, product differentiation, and M, market share, are examples of independent variables. βn shows that the variables can be as many as possible depending on the business itself. According to Jain, C. L. (2000), business forecasting is normally completed through the application of data mining processes where models are used to predict future using existing/historical data from which business potential if projected based on different business activities as well as transactions. To Jain, the sole purpose of data mining is to establish the presence of predictive criteria which might be present if large volumes of historical data are used.
...Download file to see next pagesRead More
Cite this document
(“Statistical Forecasting in Business Term Paper Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from https://studentshare.org/business/1565599-statistical-forecasting-in-business
(Statistical Forecasting in Business Term Paper Example | Topics and Well Written Essays - 1000 Words)
“Statistical Forecasting in Business Term Paper Example | Topics and Well Written Essays - 1000 Words”, n.d. https://studentshare.org/business/1565599-statistical-forecasting-in-business.
Companies attempting to recognize costs, improve flexibility and responsiveness to changing customer demands, and also maintain competitive edge are moving toward establishment of a lean production and supply system. The lean supply chain is developed to remove waste within the operations cycle and also to maximize quality while allowing for allocation of capital investment to be distributed more effectively throughout all areas of business operations.
Business analytic applications are generally used to measure and predict the performance of various business operations and consequently such applications are important sources of business intelligence to the organizational management which can help the to make improvements in their organization’s business functions (Davenport, 2006).This paper discuses the three main business analytics applications such as SPSS analytics, SAS analytics application and Oracle analytics software as well ass their potential deployment in cloud computing. IBM’s SPSS predictive software is currently one of the widely used business applications that enable managers to effectively and accurately predict a numbe
Identification of my strengths and weaknesses will assist me in developing a personal development plan that will guide me in the attainment of my study objectives. According to the literature, this position holder motivates and mentors other service delivery staff while being a champion of teamwork to promote the increased use of shared service capacity (Collier 1998).
This enables control and management of resources better than doing in any other way. The analysis is done to analyze and identify the appropriate model of forecasting for the softwood unfilled orders forecasting. The number of unfilled
Business statistics is a field that makes use of the statistical tools and allows the business managers to make the best possible decisions at the time of uncertainty. These tools allow the managers to covert the raw data into useful information which plays a significant role in the decision-making process (Keller, pp. 6).
Models and forecast based on statistical data from a probabilistic proposition which is tangible and which spells out the chance of the organization/business performing better than it currently does. It is easier to apply statistics and make decisions that are satisfying and which fit different scenarios and situations.
The author states that business forecasting is done on short-term, long-term, and medium depending on the particular application. Short-term forecast may include decisions on scheduling of production, personnel and transportation. Medium-term forecasts involve decisions on future resource requirements.
Capital budgeting is important for several reasons. First, when making the decision to procure assets, managers are required to forecast the revenue of the assets over their lifetime. Second, provided with the duration of the organization’s projects, capital budgeting decisions eventually define the organization’s strategic plan.
10 Pages(2500 words)Term Paper
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Term Paper on topic Statistical Forecasting in Business for FREE!