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The Purpose of This Feasibility Study Is To Forecast The Sales of Renewable Stationary Generators Over The Next Three Years

This feasibility study aims to forecast sales of renewable stationary generators over the next three years using time-series analysis of historical sales data from the past five years. The analysis will examine trends, seasonality, and noise in the data. Based on assumptions of continued growth and higher summer/lower winter sales, the forecast predicts an average 15% annual increase, with sales reaching 500, 600, and 700 units in each of the next three years respectively.

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44 views2 pages

The Purpose of This Feasibility Study Is To Forecast The Sales of Renewable Stationary Generators Over The Next Three Years

This feasibility study aims to forecast sales of renewable stationary generators over the next three years using time-series analysis of historical sales data from the past five years. The analysis will examine trends, seasonality, and noise in the data. Based on assumptions of continued growth and higher summer/lower winter sales, the forecast predicts an average 15% annual increase, with sales reaching 500, 600, and 700 units in each of the next three years respectively.

Uploaded by

Nore
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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The purpose of this feasibility study is to forecast the sales of renewable stationary

generators over the next three years. The study will consider the level, trend, seasonality, and
noise of the data to make an assumption forecast. The data used for the study is based on
assumption of historical sales data for the past five years.

Methodology:
To forecast the sales of renewable stationary generators, we will use the time-series
analysis method. The first step is to plot the historical sales data to identify any trends,
seasonality, or noise. We will use the following steps to analyze the data:
Level Analysis: We will calculate the average sales for each year to determine the level
of the data.
Trend Analysis: We will calculate the linear trend for the data by fitting a regression line
to the sales data. This will help us identify any upward or downward
trends in sales.
Seasonality Analysis: We will use a seasonal decomposition method to identify any
seasonal patterns in the data. This will help us understand how sales vary
from month to month or quarter to quarter.
Noise Analysis: We will calculate the standard deviation of the residuals to identify any
noise in the data.

After analyzing the data, we will use a combination of the Holt-Winters method and ARIMA
modeling to forecast the sales of renewable stationary generators over the next three years. We
will use the R software package to perform the analysis.

Assumptions:
 The sales of renewable stationary generators will continue to grow at a steady rate over the
next three years.
 There is a seasonal pattern in sales, with higher sales during the summer months and lower
sales during the rainy months.
 The noise in the data is random and will not have a significant impact on the forecast.

Results:\
Based on the analysis of the historical sales data, we forecast the sales of renewable stationary
generators to increase by an average of 15% per year over the next three years. The seasonal
decomposition analysis revealed that sales are higher in the summer months and lower in the
winter months. The Holt-Winters method and ARIMA modeling were used to generate the
forecast, which indicates that sales will reach 500 units in the first year, 600 units in the second
year, and 700 units in the third year.
Conclusion:

Based on the results of this feasibility study, it is feasible to forecast the sales of renewable
stationary generators over the next three years. The combination of the Holt-Winters method and
ARIMA modeling provides an accurate forecast of future sales. However, it is important to note
that the assumptions made in this study may not hold true in the future and may require updating
the forecast as new data becomes available.

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