Financial Modeling and Forecasting- Phase 3 - Seasonal and Cyclical Forecasting Components
spanisheve55Task Type: Individual Project Deliverable Length: 500–700 words
Due Date: 1/26/2014 11:59:59 PM- MINUM OF 3 REFERENCES- ORIGINAL WORK
Explain how to use a multiple linear regression model to estimate future sales. Explain how the various independent variables might affect sales. The formula is
Y’ = B0 + bx1 +bX2 + bXn
where B0 is the y-axis intercept, b is the slope of the line, Y’ is the dependent variable, and X is the independent variable. Assume that you are estimating the sale of gourmet pies, and include the following in your analysis:
- Price of the pie
- Price of the competitor's pie
- Inflation rate
- Disposable income
- Unemployment rate
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