Question

In: Operations Management

This data is for forecasting future sale considering additive seasonality approach and answer related questions. Time...

This data is for forecasting future sale considering additive seasonality approach and answer related questions.

Time

Year

Season

Sale

1

2018

Q1

1

2

Q2

7

3

Q3

3

4

Q4

2

5

2019

Q1

6

6

Q2

8

7

Q3

1

8

Q4

9

PART a) What is the seasonality index for second season (Q2) ?

Part b)   

Assume that we run the regression for the deseasonalized data after calculating seasonality index . We find that regression line slope is 0.4 , and intercept is 2.8. By considering the slope and intercept, what is your final forecast for second season of 2020 by considering both trend and seasonality?

Part c)

Slope = 0.4, intercept =2.8 for deseasonalized data, what is the absolute error of second season of 2018?

Solutions

Expert Solution

Before answering the specific questions, let us have an insight about Forecasting based on Seasonality Trends:

Using above mentioned concepts, let us try to solve the given question:

Answering the specific questions asked in the problem:

keosha answered 7 months ago
Next > < Previous

Related Solutions

QUESTION 5 The best approach to forecasting future performance is to focus only on the company's...
QUESTION 5 The best approach to forecasting future performance is to focus only on the company's past earnings. True False QUESTION 8 Management's choice of accounting methods and accrual estimates will not affect valuations based on earnings and book values. True False 4 points    QUESTION 9 Abnormal Earnings arise when a company is able to produce earnings that exceed the expected rate of return on equity. True False QUESTION 14 Strategy analysis provides a critical understanding of a company's...
A time series model is a forecasting technique that attempts to predict the future values of...
A time series model is a forecasting technique that attempts to predict the future values of a variable by using only historical data on that one variable. Here are some examples of variables you can use to forecast. You may use a different source other than the ones listed (be sure to reference the website). There are many other variables you can use, as long as you have values that are recorded at successive intervals of time. Currency price GNP...
Answer 3 of the of these 5 questions AND the questions related to the video in...
Answer 3 of the of these 5 questions AND the questions related to the video in folder on Middle-age: Describe the physical changes that occur during middle age – brain, muscles, senses, skeletal, etc., How do these changes affect daily life and health? Explain the terms “fluid” and “crystallized” intelligence, “”, “menopause” “empty nest syndrome” Describe Erickson’s stage of developmental crisis for middle adulthood. Generativity vs. Stagnation Explain the terms - mid-life crisis, empty nest syndrome, cluttered nest, How do...
What do you understand by a time series forecasting approach? Describe each of the four factors...
What do you understand by a time series forecasting approach? Describe each of the four factors in this approach and indicate how they are determined
Consider the epidemiological approach and the questions related to health events and health concerns. Answer these questions in relation to the SARS-CoV-2 (COVID-19) pandemic.
Critical Thinking.Consider the epidemiological approach and the questions related to health events and health concerns. Answer these questions in relation to the SARS-CoV-2 (COVID-19) pandemic.
1)In the absence of data history, what is the primary approach to forecasting? 2)Why are long...
1)In the absence of data history, what is the primary approach to forecasting? 2)Why are long term forecasts important and which level of management is most interested in long term forecasts? 3)Why are short term forecasts important and which level of management is most interested in short term forecasts? 4)Briefly define a micro forecast- 5)Briefly define a macro forecast- 6)Briefly define a point forecast- 7)Briefly define an interval forecast- 8)Briefly define a density forecast- 9)What is one of the chief...
(Time Value Concepts Applied to Solve Business Problems) Answer the following questions related to Dubois Inc...
(Time Value Concepts Applied to Solve Business Problems) Answer the following questions related to Dubois Inc a. Dubois Inc. has $600,000 to invest. The company is trying to decide between two alternative uses of the funds. One alternative provides $80,000 at the end of each year for 12 years, and the other is to receive a single lump-sum payment of $1,900,000 at the end of the 12 years. Which alternative should Dubois select? Assume the interest rate is constant over...
Use the following to answer questions 20-22 Amy Co. has the following data related to an...
Use the following to answer questions 20-22 Amy Co. has the following data related to an item of inventory: Inventory, May 1 40 units @ $100 Purchase, May 7 70 units @ $80 Purchase, May 16 170 units @ $60 Ending Inventory 10 units 20. The value assigned to ending inventory if Amy uses LIFO is 21. The value assigned to cost of goods sold if Amy uses FIFO is 22. The value assigned to ending inventory if Amy uses...
Use the following time-series data to answer the given questions. Time Period Value 1 27 2...
Use the following time-series data to answer the given questions. Time Period Value 1 27 2 30 3 58 4 63 5 59 6 67 7 70 8 86 9 101 10 97 a. Develop forecasts for periods 5 through 10 using 4-month moving averages. b. Develop forecasts for periods 5 through 10 using 4-month weighted moving averages. Weight the most recent month by a factor of 4, the previous month by 2, and the other months by 1. c....
Use the following time-series data to answer the given questions. Time Period Value 1 27 2...
Use the following time-series data to answer the given questions. Time Period Value 1 27 2 30 3 58 4 63 5 59 6 67 7 70 8 86 9 101 10 97 a. Develop forecasts for periods 5 through 10 using 4-month moving averages. b. Develop forecasts for periods 5 through 10 using 4-month weighted moving averages. Weight the most recent month by a factor of 4, the previous month by 2, and the other months by 1. c....
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT