Abstract
Linear Regression (LR) forecasts the value of a random variable (dependent variable) for a given value of an associated independent variable. The regression equation provides the formula for such a calculation. Simple Exponential Smoothing (SES) forecasts the bases its forecasts on a weighted average of past data, with more weight on the more recent periods. A smoothing factor helps in providing weight. It generally forecasts for the short-term. In the present case, we forecast the sales data for year-2 for ABC Furniture Company using both the methods. For SES, we use two smoothing factors α equal to 0.15 and 0.90 ...