Forecasting Flashcards
(4 cards)
1
Q
Techniques for forecasting costs
A
High-low method
Linear regression analysis
Time series analysis
2
Q
What is high low method?
A
Taking highest level of activity (e.g. distribution) and the lowest level and comparing the costs for each level.
3
Q
What is linear regression analysis?
A
Make forecasts or estimates whenever a linear
relationship is assumed between two variables, and historical data is available for analysis
4
Q
What is time series analysis?
A
Series of figures recorded over time. A time series is often shown as a histogram and can be used in order to identify whether there is any underlying historical trend
