Data on demand over the last few years are available as follows: Time Period Demand 7...

Data on demand over the last few years are available as follows:

Time Period	Demand
7 years ago	7
6 years ago	28
5years ago	21
4 years ago	42
3 years ago	35
2 years ago	56
Last year	49

a. What is this year's forecast using trend-adjusted (double) smoothing with alpha=.2 and beta=.1, if the forecast for the last year was 56, the forecast for two years ago was 46, and the trend estimate for last year's forecast was 7?

b. What are this and next year's forecasts using the least squares trend line for these data?

c. What is this year's forecast using exponential smoothing with alpha=.25, if last year's smoothed forecast was 45?

d. What is this year's forecast using a four-year simple moving average?

e. This year's forecast using the naive approach

Solutions

Expert Solution

Amanda K answered 2 years ago

Next > < Previous

Related Solutions

7. Measuring standalone risk using realized (historical) data Returns earned over a given time period are...

7. Measuring standalone risk using realized (historical) data Returns earned over a given time period are called realized returns. Historical data on realized returns is often used to estimate future results. Analysts across companies use realized stock returns to estimate the risk of a stock. Consider the case of Happy Dog Soap Inc. (HDS): Five years of realized returns for HDS are given in the following table. Remember: 1. While HDS was started 40 years ago, its common stock has...

Over a period of a few hundred years, Islam spread from its place of origin in...

Over a period of a few hundred years, Islam spread from its place of origin in the Arabian Peninsula all the way to modern Spain in the west and northern India in the east. Please reflect on at least three reasons regarding how Arabs were able to construct such a huge empire so quickly.

Over the last few years, specialty coffee shops have expanded in the east coast due to...

Over the last few years, specialty coffee shops have expanded in the east coast due to the influence that the presence of Starbucks has had on coffee trends. In an effort to boost sales, the credit department at Silverston Coffee Merchants, a wholesaler of specialty imported coffee beans, has approved credit sales to cafés that have not had a long operating history. Silverston has enjoyed an impressive growth in revenue to $400 million. However, bad debt expense has increased from...

Student debt has significantly increased over the last few years and it has become a major...

Student debt has significantly increased over the last few years and it has become a major national debate in countries like the US, Canada and UK. I 1- Give a brief overview of the student debt in Canada. 2- What is the impact of student loans on: students (before college, during college and after college); the economy ; the society at large 3- What are some policies that Canada and other nations have implemented to mitigate student debt? What policies...

Susan Inc. has been disappointed with the Willow Division's performance over the last few years and...

Susan Inc. has been disappointed with the Willow Division's performance over the last few years and has decided that it would be best to sell the division. As of December 31, 2019 the Willow divison is considered to be held for sale. The division's loss from operations for 2019 was $1,960,000. The division's book value and fair value less cost to sell on December 31 were $3,030,000 and $2,360,000, respectively. What should the company report as loss on discontinued operations...

Discuss the major causes of fraud over the last few years. What areas have increased and...

Discuss the major causes of fraud over the last few years. What areas have increased and what areas have decreased? Why is this the case? Have the costs of fraud increased or decreased? What is the single most effective method to prevent fraud from occurring according to the report?

The following table shows the actual demand observed over the last 11 years

The following table shows the actual demand observed over the last 11 years Year1234567891011Demand7951013713149118This exercise contains only parts b, c, and d.b) Using the 3-year moving average, provide the forecast from periods 4 through 12 (round your responses to one decimal place). Year456789101112Forecastc) Using the 3-year weighted moving average with weights 0.20. 0.35. and 0.45. using 0.45 for the most recent period provide the forecast from periods 4 through 12.Year456789101112Forecastd) Mean absolute deviation for the forecast developed using the 3-year moving average...

The residuals for 15 consecutive time periods are as follows: Time Period Residual Time Period Residual...

The residuals for 15 consecutive time periods are as follows: Time Period Residual Time Period Residual 1 + 4 9 + 6 2 - 6 10 - 3 3 - 1 11 + 1 4 - 5 12 + 3 5 + 2 13 0 6 + 5 14 - 4 7 - 2 15 - 7 8 + 7 a) Plot the residuals over time. What conclusion can you reach about the pattern of the residuals over time? b)...

Suppose Ace, over the last few years, has had an 18 percent average return on equity...

Suppose Ace, over the last few years, has had an 18 percent average return on equity (ROE) and has paid out 20 percent of its net income as dividends. Under what conditions could this information be used to help estimate the firm’s expected future growth rate, g? Estimate ks using this procedure for determining g

World oil prices have been rapidly swinging over the last few years, in part because of...

World oil prices have been rapidly swinging over the last few years, in part because of the declining value of the U.S. dollar, changes in supply and demand, and OPEC’s attempts to manage output in order to maintain higher prices. (OPEC stands for the Organization of Petroleum Exporting Countries) As the president of an oil producing and exporting company in Alberta: Explain how you may use hedging to protect your company’s income. Share a recent publication with your fellow students...

Subjects