Suppose that you work for a U.S. senator who is contemplating writing a bill that would...

Suppose that you work for a U.S. senator who is contemplating writing a bill that would put a national sales tax in place. Because the tax would be levied on the sales revenue of retail stores, the senator has asked you to prepare a forecast of retail store sales for year 8, based on data from year 1 through year 7. The data are:

(c1p8)	Year	Retail Store Sales
	1	$ 1,225
	2	1,285
	3	1,359
	4	1,392
	5	1,443
	6	1,474
	7	1,467

Use the naive forecasting model presented in this chapter to prepare a forecast of retail store sales for each year from 2 through 8.
Prepare a time-series graph of the actual and forecast values of retail store sales for the entire period. (You will not have a forecast for year 1 or an actual value for year 8.)
Calculate the MAPE for your forecast series using the values for year 2 through year 7. (please show how to plug in Excel)

Expert Solution

Under Naive method, forecast value is the last period's actual value. Please see the table below. Second last column contains the forecast. The last column contains the excel formula used to get the forecast values.

The plot is shown below:

jeff jeffy answered 2 hours ago

You are an economics advisor to a U.S. Senator. The Senator is interested in sponsoring legislation...

You are an economics advisor to a U.S. Senator. The Senator is interested in sponsoring legislation to address the impact of rapidly rising medical costs, and has commissioned you to provide a briefing paper on the subject. You know medical costs have risen faster than other consumer costs over the past decade, and decide to utilize indifference curve analysis to demonstrate how the cost changes have impacted the Senator's constituents. Provide an explanation as if it were a briefing paper...

Senator Bernie Sanders has introduced a “Medicare for all” bill in the U.S. Senate. Under his...

Senator Bernie Sanders has introduced a “Medicare for all” bill in the U.S. Senate. Under his plan, government would pay 100% of the healthcare of all citizens in the U.S. This would effectively reduce the out-of-pocket price that people pay to zero. How would this plan differ from the current structure of Medicare? How would the Sanders bill create a “moral hazard” and affect the way people behave in the market for medical care services if it was passed by...

You are an assistant to a senator who chairs an ad hoc committee on reforming taxes...

You are an assistant to a senator who chairs an ad hoc committee on reforming taxes on telecommunication services. Based on your research, AT&T has spent over $15 million on related paperwork and compliance costs. Moreover, depending on the locale, telecom taxes can amount to as much as 25 percent of a consumer’s phone bill. These high tax rates on telecom services have become quite controversial, due to the fact that the deregulation of the telecom industry has led to...

A Treasury bill is a discount bond issued by the U.S. Treasury. Suppose that on January...

A Treasury bill is a discount bond issued by the U.S. Treasury. Suppose that on January 1, 2012, a one-year Treasury bill with $1000 face value is sold at $970.87. Investors expect that the inflation rate will be 2% during 2012, but at the end of the year, the inflation turns out to have been 1%. What is the nominal interest rate on the bill (measured as the yield to maturity), the expected real interest rate, and the actual real...

You have been offered a U.S Treasury Bill. The Face value of the bill is $10,000,...

You have been offered a U.S Treasury Bill. The Face value of the bill is $10,000, and the price is $8,925.The bill matures in 1/2 year. Compute the YTM using both discrete and continuously compounded interest on excel

1 Suppose you are a U.S. investor who is planning to invest $125,000 in Japan. You...

1 Suppose you are a U.S. investor who is planning to invest $125,000 in Japan. You do so at a starting exchange rate of 84.28 ¥/$. Your Japanese investment gains 7 percent, and the ending exchange rate is 88.65 ¥/$. What is your total return on this investment?

Suppose that you work for a U.S. based MNC that exports items to both Canada and...

Suppose that you work for a U.S. based MNC that exports items to both Canada and Mexico. 75% of all net cash inflows are denominated in Canadian Dollars (C$) and 25% of all net cash inflows are denominated in Mexican Pesos (MXN). Suppose that the historical correlation between the Canadian dollar and Mexican peso over the last three years has been 0.65. Also, assume that over the same three-year time period the monthly standard deviation of the Canadian dollar was...

Suppose you work as an economic advisor to the President, who wants to levy a $1.00...

Suppose you work as an economic advisor to the President, who wants to levy a $1.00 tax on the sale of gasoline (with the tax obligation on the seller) in an effort to control climate change. Two lobbyists are in the room with you, one for the oil industry, the other from a consumer advocacy group. The oil industry lobbyist says that putting the tax on SELLERS means they will bear the burden. The consumer advocate says that it’s actually...

Pretend it is early 2002 and you are Senator Paul Sarbanes. What would you do differently when...

Pretend it is early 2002 and you are Senator Paul Sarbanes. What would you do differently when writing the Sarbanes-Oxley Act? (Do not say you think it is perfect and you would not do anything differently. Discuss at least two things you would do differently.please explain in detail.

In the next U.S Presidential Election, would you be more likely to support a candidate who...

In the next U.S Presidential Election, would you be more likely to support a candidate who favors international trade, or a candidate who opposes international trade? Why? What arguments could that candidate make that might persusde their opponents to agree with them?

Question