Exponential regression of data close to one

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SUMMARY

This discussion focuses on the application of exponential regression for modeling sales data. The user initially faced challenges predicting sales for products with low sales figures, specifically those with sales numbers around 0 or 1. The issue was identified as a programming error where data points for time periods with no sales were omitted. Once zero sales were incorporated into the dataset, the exponential regression model began to yield accurate predictions.

PREREQUISITES
  • Understanding of exponential regression modeling
  • Familiarity with linear regression and logarithmic transformations
  • Basic programming skills for data manipulation
  • Knowledge of sales data analysis techniques
NEXT STEPS
  • Learn about integrating exponential regression models for predictive analytics
  • Explore techniques for handling zero or low-value data points in regression analysis
  • Investigate programming best practices for data preprocessing in sales forecasting
  • Study the limitations and assumptions of exponential regression in various contexts
USEFUL FOR

Data analysts, sales strategists, and anyone involved in predictive modeling of sales data will benefit from this discussion.

hddd123456789
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Hi,

I've been working on trying to model sales for my work and I'm really just modeling it using exponential regression, so I get the linear regression of the logarithm of the data and obtain the desired formula.

What I'm confused about is that if I integrate this to try to predict how many sales will be from now to some future point, it seems to work OK for products which have more sales (sale numbers are far from 1 for a given period of time) but not so well for products with poor sales (sales numbers that are either 0 or ~1 for a given period of time).

For the latter products the exponential model seems to predict that there are on average around 1 sale per unit of time, which when integrated ends up adding together a bunch of 1's for each period of time.

Am I misusing exponential regression or is this a limitation of its use?

Many thanks!
 
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Hi !
I cannot fully understand what is the problem. can you post an example of data ?
 
Thanks for the reply! But actually it turned out to be some sort of programming glitch. My first huge mistake was to not add in data points for time periods that had no sales. I realized this and wrote the code to add in zeroes for these, but when I was still getting expected values that were well over the actual ones, I thought maybe my model was screwed up.

Apparently the error affected slow selling products more because they tend to have more time periods with zero sales. But anyway, the code randomly started working as expected so no complaints.
 

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