Ordinary least squares regression is a linear approach to multiple regression that eliminates the error term (ei) by squaring the error terms to create a Best Linear Unbiased Estimate (BLUE). This method has some very attractive statistical properties that have made it one of the most popular methods of regression analysis.
Demand Planning uses the ordinary least squares method to do multiple linear regression.
Ordinary least squares regression may be a linear modeling approach, but many times it works in situations where the data is non-linear.
General notation:
Y = b0 + b1X1 + b2X2 + b3X3...bnXn
Where:
Y = Dependent variable
b0 = Constant
bn = Coefficient for independent variable
Xi = Independent variable
Example:
Consumer demand for product Y = b0 + bprice + badvertising + bmerchandising + bdistribution + bcompetitive price
More terms such as ordinary least squares in Dictionary O.
- Manual Offsetting:
- Help Different remuneration entitlements can either be grouped or offset. You can offset entitlements in any of the following processes: Remuneration clearing Guarantee offsetting Retention ordinary least squares definition.
- Manual Organizational Measure:
- Help An object for grouping together several measure areas that contain changes to force elements, positions, organizational structures, and object assignments ordinary least squares explain.
- Manual Outlier:
- Help value in the historical data that lies outside the expected range of values. There can a variety of reasons for this, for example, an error in data entry or a freak result. Such data points should ordinary least squares what is.
- Manual Organizational Change:
- Help investment holding from one consolidation unit to another consolidation unit of the same consolidation group, based on a management decision. This is a special type of transfer that does not affect ordinary least squares meaning.
- Manual Object Type (LO-ECH):
- Help change objects according to the object reference for engineering change management. Objects such as bills of material, task lists, document or materials can be processed with reference to a change ordinary least squares abbreviation.
