How correlation method.Helps in forecasting demand of a product?
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There are mainly two methods used for forecasting the demand of a product.
One of those methods is through the statistical analysis of past data.
By the use of correlation, a statistical data analyzing technique, people can see the nature of demand in numerical form.
Demand of upcoming product is determined based on the historical data presented. This method is helpful because its cost effective and reliable. There are very few chances of error. Subjectivity is minimized in this approach.
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The dependent variables is then forecast based on this estimated equation for a given value of the independent variable.
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