How do you use linear equation for forecasting? - Answers

Linear equations can be used for forecasting by establishing a relationship between a dependent variable (such as sales or demand) and one or more independent variables (like time, price, or marketing spend). By analyzing historical data, you can create a linear regression model to predict future values based on this relationship. Once the equation is formulated, you can input future values of the independent variables to estimate the dependent variable, aiding in decision-making and planning. This method is particularly useful for identifying trends and making data-driven forecasts.