Eddies restaurant collected the following data on the relationship between advertising and sales at a sample of five restaurants..let x prepresent advertising expenditures and y represent sales. Use the method of least squares to develop a straight line approximation of the relationship between the two variables Compute the mean squared error for each of the methods usea. Use exponential smoolfor January (Period 13).orecast for January (Period 13).eriod 13).ie's Restaurant collected the following data on the relationssample of five restaurants:Sales ($1000s)AdvertisingExpenditures ($1000s)1194444010521453Let x represent advertising expenditures and yleast squares to develop a straight-line approx-the two variables.Use the equation developed in part (a) toexpenditure of $8000.nint

Formula to calculate the least-squares method: y=bo+b1x.........................(1) where,…

Eddies restaurant collected the following data on the relationship between advertising and sales at a sample of five restaurants. .let x prepresent advertising expenditures and y represent sales. Use the method of least squares to develop a straight line approximation of the relationship between the two variables

Eddies restaurant collected the following data on the relationship between advertising and sales at a sample of five restaurants. .let x prepresent advertising expenditures and y represent sales. Use the method of least squares to develop a straight line approximation of the relationship between the two variables

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...

See similar textbooks

Similar questions

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?
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_26.xlsx contains the monthly number of airline tickets sold by the CareFree Travel Agency. a. Create a time series chart of the data. Based on what you see, which of the exponential smoothing models do you think will provide the best forecasting model? Why? b. Use simple exponential smoothing to forecast these data, using a smoothing constant of 0.1. c. Repeat part b, but search for the smoothing constant that makes RMSE as small as possible. Does it make much of an improvement over the model in part b?
MovieFlix - Advertising and Subscriptions Year Advertising Expenditure $ 000 Membership Subscriptions 2013 51 62 2014 58 68 2015 62 66 2016 65 66 2017 68 67 2018 76 72 2019 77 73 2020 78 72 2021 78 78 2022 84 73 2023 85 76 (i) Plot the scattergraph for the data. (ii) Use the data, to develop a regression equation relating advertising expenditure to membership. (iii) Estimate the membership if $40 000 is spent on advertising. (iv) How much must be spent on advertising to obtain a membership of 80 (000)? (iv) What is the nature of the relationship between advertising expenditure and membership? (v) Forecast 2024 membership using an alternative method, clearly explaining…
YEAR ADVERTISING EXPENDITURE ($000) MEMBERSHIP SUBCRIPTIONS 2013 51 62 2014 58 68 2015 62 66 2016 65 66 2017 68 67 2018 76 72 2019 77 73 2020 78 72 2021 78 78 2022 84 73 2023 85 76 i) Plot the scattergraph for the data. (ii) Use the data, to develop a regression equation relating advertising expenditure to membership. (iii) Estimate the membership if $40 000 is spent on advertising. (iv) How much must be spent on advertising to obtain a membership of 80 (000)? (iv) What is the nature of the relationship between advertising expenditure and membership? (v) Forecast 2024 membership using an alternative method, clearly explaining the limitations of your selected method. (vi) What are the limitations of the method used in (i)?
MovieFlix - Advertising and Subscriptions Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Advertising Expenditure $ 000 51 58 62 65 68 75 77 78 78 84 85 76 Membership Subscriptions (1) Plot the scattergraph for the data. 62 68 66 66 欲 72 73 72 78 73 75 67 76 (ii) Use the data, to develop a regression equation relating advertisi. expenditure to membership. (iii) Estimate the membership if $40 000 is spent on advertising. (iv) How much must be spent on advertising to obtain a membership of 80 (000)? (v) What is the nature of the relationship between advertising expenditure and membership? (vi) Forecast 2024 membership using an alternative method, clearly explaining the limitations of your selected method. (vii) What are the limitations of the method used in (iii)?
Which of the following concepts explain why we tend to make errors in affective forecasting? a) focalism b) impact bias c) defensive pessimism d) A and B only d) A, B, and C
Which of the following methods lends itself to forecasts for long-term emerging phenomena or revolutionary technologies? A. the sales force estimate technique B. the delphi method C. the jury of executive opinion method D. market testing
Netflix decided to distribute the show "Orange is the New Black". This decision was because the show 'Weeds', performed very well on Netflix in terms of viewership and engagement. Both shows have the same writers/creative teams. Data shows that viewers enjoy shows by the same writers/creative teams. This is an example of Netflix relying upon which type of data analytics Question 4 options: a) Descriptive b) Diagnostic c) Predictive d) Prescriptive
Which best describes the null hypothesis associated with an Analysis of Variance (ANOVA)? Group of answer choices a. Ho: Variance 1 = Variance 2 = Variance 3 b. Ho: Standard Deviation 1 = Standard Deviation 2 = Standard Deviation 3 c. Ho: Proportion 1 = Proportion 2 = Proportion 3 d. Ho: Median 1 = Median 2 = Median 3 e. Ho: Mean 1 = Mean 2 = Mean 3
Year Season Sales 2018 Winter 40 2018 Spring 29 2018 Summer 31 2018 Fall 40 2019 Winter 102 2019 Spring 87 2019 Summer 96 2019 Fall 132 2020 Winter 105 2020 Spring 93 2020 Summer 105 2020 Fall 117 2021 Winter 141 2021 Spring 39 2021 Summer 114 2021 Fall 123 What is the slope of the trend equation obtained by linear regression? Round to two decimal digits. What is the intercept of the trend equation obtained by linear regression? Round to two decimal digits. What is the seasonal index for Spring? Round to two decimal digits. The quarter number for Winter of 2018 is 1. What is the quarter number for Spring of 2025? What is the trend based forecast for Spring of 2025. Round to a whole number. What is the seasonally adjusted trend based forecast for Spring of 2025? Please do not use excel to find the slope and intercept, thank you so much!
Consider the monthly sales data of a company for last year as well as first six-month data for current year. Use a three- quarter weighted moving average, Forecast the sales of company for 3rd Quarter of current year. Use Weights of 4/7, 2/7 and 1/7, giving more weight to more recent data. Note, the 1ist quarter is Jan, Feb and March, 2nd quarter is Apr, May, June, 3rd quarter is July, Aug and Sept, and 4th quarter is Oct, Nov and Dec. Month Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Last Yr 100 125 135 175 185 200 150 140 130 200 225 250 Current Yr 125 135 135 190 200 190