If a firm wants to forecast its gross margin by product for the next year, how does the firm do so? Select an answer: product revenue projection times projected gross margin for the product total revenue projection times projected gross margin for the average product product revenue projection divided by projected gross margin for the product total revenue projection divided by projected gross margin for the average product

If a firm wants to forecast its gross margin by product for the next year, how does the firm do so? Select an answer: product revenue projection times projected gross margin for the product total revenue projection times projected gross margin for the average product product revenue projection divided by projected gross margin for the product total revenue projection divided by projected gross margin for the average product

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.6: Moving Averages Models

Problem 22P: The file P13_22.xlsx contains total monthly U.S. retail sales data. While holding out the final six...

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The Baker Company wants to develop a budget to predict how overhead costs vary with activity levels. Management is trying to decide whether direct labor hours (DLH) or units produced is the better measure of activity for the firm. Monthly data for the preceding 24 months appear in the file P13_40.xlsx. Use regression analysis to determine which measure, DLH or Units (or both), should be used for the budget. How would the regression equation be used to obtain the budget for the firms overhead costs?
The file P13_22.xlsx contains total monthly U.S. retail sales data. While holding out the final six months of observations for validation purposes, use the method of moving averages with a carefully chosen span to forecast U.S. retail sales in the next year. Comment on the performance of your model. What makes this time series more challenging to forecast?
A company has the following demand history by seasons over a two-year period. The production planner deseasonalizes the data first. Then, using the exponential smoothing method with a = 0.30 and F= 80, she forecasts the demand for the first season of 2021. Finally, the planner reseasonalizes her forecast. What is her final forecast for the first season of 2021? 2019 2020 Season 1 84 88 Season 2 76 71 Season 3 93 97 Season 4 46 51 Season 5 77 73 O a. 87.50 O b. 77.57 Oc. 79.87 O d. 75.98 O e. 86.43
The long-term financial forecast plays a crucial part in the company's long-term strategic plan. True or False True False 25 28 étv N 4
A business conducted a linear regression to estimate its demand function and obtain the following demand function Q = 200 - 1.5P + 0.55A - 2.8Py + 0.05Inc, where P is price and A is advertising. When P = $21. A = $30 and Quantity = 160, find the profit-maximizing advertising-to-sales ratio (hint: first find the price and advertising elasticities). Type as either a decimal out two spaces, like 0.10 OR as a percentage like 10%. %3! %3! Question 17 During recessions, people's reservation price (aka reserve price) searching. which results in O drops; less O rises; more drops; more O rises; less
The table below shows the sales figures for a brand of shoe over the last 12 months. Months Sales January 69 February 75 March 86 April 92 May 95 June 100 July 108 August 115 September 125 October 131 November 140 December 150 Using the following, forecast the sales for the months up to January the following year:- 1. A simple three-month moving average. 2. A three-period weighted moving average using weights of 1, 2, and 3. Assign the highest weight to the most recent data. 3. Exponential Smoothing when α= .6 and the forecast for March is 350. 4. Determine which of the three forecasting techniques is the most accurate using MAD.
Data collected on the monthly demand for a certain product in thousands of dollars are shown in the following table. Month Demand 1 145.5 2 160 3 71 4 99 5 194.5 206 7 135.5 8 152.5 9. 246 10 259 11 181.5 12 194 a) Using a weighted moving average with three periods, determine the demand for period 13. Use 3, 2, and 1 for the weights of the most recent, second most recent, and third most recent periods, respectively b) Find the MAD, MSE and MAPE b) Use exponential smoothing with a smoothing constant of 0.30 to forecast the sales. Assume that last period's forecast for month 1 is equal to actual to begin the procedure Which method do you think is best? Is this an improvement over the weighted average- use MAD only
In market survey, the present buying behavior and future purchasing plans of existing and potential customers are used to forecast demand. True False
Demand forecasting is a process of O a. Estimation of previous year demand based on current data b. Estimation of future demand based on past and present data O c. Prediction of past demand based on future data o d. Prediction of last year demand using past data
A company which installs swimming pools has recently merged with another regional installer. It is becoming evident that prices over the next 24 months will increase substantially, and the supply manager is considering forward buying or some other option to take advantage of what is expected to be an expensive and tight market. In particular, there is a great need for pool chemicals. In terms of forecasting, which of the following would be most useful in this situation? O Seasonal Forecasting O Future sales based on past sales O Judgment sampling O Delphi method
Use the below formula to calculate the CLV for the following: A manager of a cable company wants to determine if it is strategic to acquire the Brett family, by estimating their household-level CLV. The manager estimates that it will cost the company $80 (A) to get the Bretts’ to switch, and the Bretts’ will generate $150 profit each year (M), with a $30 annual marketing cost to retain them (C). The estimated retention rate (r) is 65%, and the current discount rate is 5%.(d) i) CLV= ii) Based on your calculation, are the Brett’s profitable to the cable company?
The following table shows the three-period moving average and five-period moving average for monthly sales of Budget Furniture's during 2019. Moving averages of Budget Furniture's Time period Months Sales Three-period moving average (rounded off to Five-period moving average four decimals) R'millions 1 Jan 7 5.0000 6.2 February 5.6667 6.6 March 5 7.0000 B 4 April 8.3333 8.2 May 7 9.3333 8.4 June 8.3333 9.6 7 July 12 8.6667 9.6 August 4 A 9.2 September 10 10.6667 10 October 13 10.6667 11 November 9 12 December 10 The seasonal index for the month of February in 2019 is: LO