![]() ![]() Scenario 2: An insurance company was facing heavy losses on vehicle insurance products. ![]() How can we use these factors to forecast sales? Looking at the organizations history, we can assume that the number of sales is based on the number of salespeople and the level of promotional activity. Depending on this forecast, the budget can be allocated within the organization. The revenue is a function of sales, and therefore the requirement is to approximately forecast the sales for the year. Scenario 1: Every year, as part of organizations annual planning process, a requirement is to come up with a revenue target upon which the budget of the rest of the organization is based. Let’s start by considering the following scenarios. Also, we will look at how R programming language, a statistical programming language, implements linear regression through a couple of scenarios. In this article, let’s learn the basics of forecasting and linear regression analysis, a basic statistical technique for modeling relationships between dependent and explanatory variables.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |