Practical Management Science
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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1. United Dairies, Ic., supplies milk to several independent grocers throughout Dade County, Florida. Managers at United Dairies
want to develop a forecast of the number of half gallons of milk sold per week. Sales data for the past 12 weeks are:
week
Sales
week
sales
1
2750
3300
2
3100
8
3100
3250
2950
4
2800
3000
10
2900
11
3200
3050
12
3150
a. Construct a time series plot. What type of pattern exists in the data?
b. Compare a two-week moving average forecast with an exponential smoothing forecast for a = 0.4, which provides the better
forecasts using MSE as the measure of model accuracy?
c. Create a linear trend projection model to make a sales forecast and evaluate the accuracy of the sales forecast.
d. Based on the results, which is the best forecasting model to be used to forecast the 13th week sales?
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Transcribed Image Text:1. United Dairies, Ic., supplies milk to several independent grocers throughout Dade County, Florida. Managers at United Dairies want to develop a forecast of the number of half gallons of milk sold per week. Sales data for the past 12 weeks are: week Sales week sales 1 2750 3300 2 3100 8 3100 3250 2950 4 2800 3000 10 2900 11 3200 3050 12 3150 a. Construct a time series plot. What type of pattern exists in the data? b. Compare a two-week moving average forecast with an exponential smoothing forecast for a = 0.4, which provides the better forecasts using MSE as the measure of model accuracy? c. Create a linear trend projection model to make a sales forecast and evaluate the accuracy of the sales forecast. d. Based on the results, which is the best forecasting model to be used to forecast the 13th week sales?
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