Need to come up with a regression model to forecast monthly sales of cold beverages for the next year. What variables might be included in the model?
Please explain regression model(s) and the reason for the variables for the model.
The monthly sales of cold beverages can be a function of the following variable:
1. Weather (W), i.e. average monthly temperature.
2. The seasonality (S), i.e. December (Christmas/NewYear), Summer.
3. The variability (V) of products on offer.
That's all I think of at the moment. If you have more you can certainly account for them.
Any regression model should be a multi-variable regression. So sales of cold beverage can be expressed as:
Sales = a*W + b*S + c*V + d
To help you understand better. I'm including an example. For problem description, please see posting 78450 in the solution library. In this ...
The solution provides detailed explanations and answer for the problem including work in the Excel file.