Revenue forecasting strategy utilizing the least squares method.

Abstract

Forecasting calculates past or future events and situations, anticipating future development and timing to plan effective actions. Least Squares Method (LSM) is a popular statistical technique that can be used for estimating and forecasting revenues. Subsequently, human capital is essential for corporate success because it helps or- ganizations to run smoothly and profitably. In addition, profitability is related to human capital, with the appropriate education, training, and experience can have a big impact on a company’s success. Post- COVID-19 Development Strategy 2030 (PCDS 2030) provides an opportunity for Sarahill Consulting Sdn Bhd (SCSB) to reevaluate its strategic positioning and the new business opportunities offered by PCDS 2030. However, the Board of Directors of SCSB has set a target to generate revenue of at least RM 8 million in 3 years (the year 2025). Using LSM, data suggests that SCSB is not able to meet the revenue target and will need to increase its workforce to meet the target.