Question

In: Statistics and Probability

[13 marks] A company is interested in forecasting demand for a product. They have reason to...

[13 marks] A company is interested in forecasting demand for a product. They have reason to believe that the demand is not affected by any seasonal changes and that it does not increase or decrease systematically over time. They have data for the last 9 periods (below).

Period

1

2

3

4

5

6

7

8

9

Demand

230

210

220

250

300

280

240

230

200

In each part of this question, show your work: show the equation you use, how you plug in, and your final answer. Please do not round any answers.

a) [3 marks] Use a 4-period moving average to forecast demand for period 10.

b) [3 marks] Use a 3-period weighted moving average to forecast demand for period 10 using weights of 0.6, 0.3, and 0.1, respectively. Show your work.

c) [3 marks] Suppose the forecast for period 9 was 235 units. Use exponential smoothing with a smoothing constant of 0.6 to forecast demand for period 10.

d) [4 marks] Suppose the actual demand in period 10 was 211 units. Which of your forecasting methods from parts a through c performed best, and why? Please provide a table and make your conclusion based on your table.

Solutions

Expert Solution

orchestra answered 2 years ago
Next > < Previous

Related Solutions

[13 marks] A company is interested in forecasting demand for a product. They have reason to...
[13 marks] A company is interested in forecasting demand for a product. They have reason to believe that the demand is not affected by any seasonal changes and that it does not increase or decrease systematically over time. They have data for the last 9 periods (below). Period 1 2 3 4 5 6 7 8 9 Demand 230 210 220 250 300 280 240 230 200 In each part of this question, show your work: show the equation you...
3. [13 marks] A company is interested in forecasting demand for a product. They have reason...
3. [13 marks] A company is interested in forecasting demand for a product. They have reason to believe that the demand is not affected by any seasonal changes and that it does not increase or decrease systematically over time. They have data for the last 9 periods (below). Period 1 2 3 4 5 6 7 8 9 Demand 230 210 220 250 300 280 240 230 200 In each part of this question, show your work: show the equation...
Research forecasting and demand. As a regional manager of 13 sporting goods stores, you are thinking...
Research forecasting and demand. As a regional manager of 13 sporting goods stores, you are thinking about expanding the number of outlets in your area. How will you forecast demand and not sales? What types of forecasts would you want to create in order to support your decision? Make sure you have read the specific requirements for your original posting and your subsequent peer responses.
A company is interested in forecasting sales in the final quarter of the year based on...
A company is interested in forecasting sales in the final quarter of the year based on the first three quarters by fitting a linear regression model. Sales: 215   268   344 Quarter: 1 2 3 What proportion of the variability in sales can be explained by the model? Also predict the sales for the fourth quarter
A brokerage company is interested in forecasting the number of new accounts the office will obtain...
A brokerage company is interested in forecasting the number of new accounts the office will obtain next month. It has collected the following data for the past 12 months. Month Accounts 1 19 2 20 3 21 4 25 5 26 6 24 7 24 8 21 9 27 10 30 11 24 12 30 Use a four month moving average starting with the month of May to forecast the number of new accounts the company may expect to receive...
How does proper forecasting for manufacturing of a product aid the business in meeting demand of...
How does proper forecasting for manufacturing of a product aid the business in meeting demand of that product? In your answer discuss how season trends and cyclical products are impacted with these manufacturing decisions.
The primary difference between demand management and demand forecasting is 1) forecasting is only possible when...
The primary difference between demand management and demand forecasting is 1) forecasting is only possible when quantitative data are available. 2) demand management is proactive, while forecasting attempts to predict. 3) a firm cannot execute both approaches simultaneously. 4) one approach deals with uncertainty, while the other deals with known demand.
13. What do you perceive as the possible reason(s) that have led to MIS development occurring...
13. What do you perceive as the possible reason(s) that have led to MIS development occurring at a slower pace in the health service sector than in the business 14.  Imagine you are an IS consultant from the business sector and have been hired by the chief executive officer (CEO) of a small rural hospital to assist in the development of a HMIS. What could you say about the difference in environmental, organizational, and technological contexts between the two industrial sectors?...
11. You are responsible for the Demand Forecasting group at a mid-size company. Six weeks into...
11. You are responsible for the Demand Forecasting group at a mid-size company. Six weeks into the fiscal year, you are called to a meeting with two days of notice with the vice-president of sales, one of the finance directors and the company president. This is in reference to an email from executive leadership that the sales goals and plans are mis-aligned with your fiscal year forecast. It seems that your forecasts are 3.8% below sales plans and 3.5% below...
Question 3 (20 marks) Marketers are interested in reference groups that have the ability to encourage...
Question 3 Marketers are interested in reference groups that have the ability to encourage others to conform. a) Discuss the concept of conformity and use examples to illustrate b) Describe what an opinion leader is and discuss when marketers might use opinion leaders to encourage others to conform, use examples to illustrate.
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT