The demand for a certain drug in a hospital has been increasing. For the past six months, the following demand has been observed. Use a three-month moving average to make a forecast for July Demand unit 15 18 22 23 27 26 Months January February March April May June July 25

The demand for a certain drug in a hospital has been increasing. For the past six months, the following demand has been observed. Use a three-month moving average to make a forecast for July Demand unit 15 18 22 23 27 26 Months January February March April May June July 25

Essentials of Business Analytics (MindTap Course List)

2nd Edition

ISBN:9781305627734

Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson

Chapter8: Time Series Analysis And_forecasting

Section: Chapter Questions

Problem 11P: For the Hawkins Company, the monthly percentages of all shipments received on time over the past 12...

See similar textbooks

Related questions

Q: 10. A stock's price follows a lognormal model. You are given: (i) So = 80, (ii) a = 0.1, (iii) o =…

A: This is a question based on the probability of a stock price exceeding a particular value in the…

Q: Yarianny wants to withdraw $25199 annually starting today for the next 20 years and will increase…

A: This is the case of an annuity due. Annuity due is that annuity that starts today.

Q: risk-free rate of interest is 4%. Use a 7% risk premium for the market portfolio. Note: Do not round…

A: CAPM model is based on risk of stock. The CAPM would gives the risk based required rate considering…

Q: the call money rate is 6.8 percent, and you pay a spread of 1.9 percent over that. You buy 1,300…

A: In the trading there is margin given by the brokers so that they clients can earn more and the…

Q: Navarre Energy Research specializes in developing and commercializing new products. It is organized…

A: Concept. Economic value added = net operating profit after taxes - ( investment × cost of capital)…

Q: Your company received a $9 million order on the last day of the year. You filled the order with $3…

A: Data given: Order received= $9 million Cost of goods sold= $ 3 million Bill issued= $6 million

Q: Which of the following statements is true about perfect capital markets? Group of answer choices…

A: A perfect capital market is a market that has some idyllic properties. In a perfect capital market…

Q: Consider the following portfolio: Long 0 calls with strike price 77.0 Short 1 calls with strike…

A: An option is an agreement between two parties to buy or sell a specified quantity of the underlying…

Q: 51. Comparing Cash Flow Streams. You have your choice of two investment accounts. Investment A is a…

A: Future value of the annuity is the amount that was being deposited over the period of time and…

Q: Joe invests $5550 in an account earning 8.1% interest, compounded monthly. How long will it take for…

A: Initial investment (I) = $5550 Future value (FV) = $20345 Monthly interest rate (r) = 0.00675 (i.e.…

Q: this is te same answer i am getting and it says incorrect

A: Data from main section: Beta of asset=0.48 KA= 5.4%

Q: Your rich aunt gives you a high school graduation present of $190,000. Her present is in the form of…

A: Present value today that of the future value is based on time and interest rate is equivalent value…

Q: Time value of American option represents the value of keeping option alive and waiting till a later…

A: Solution: Option premium comprises or two values: Intrinsic value and Time value.

Q: Assume that both portfolios A and B are well diversified, that E(rA) = 22%, and E(rB) = 17%. If the…

A: Expected return of A , ErA is 22% Expected return of A , ErB is 17% Beta of A is 1.5 Beta of B is…

Q: 28. P 6000 is borrowed for 75 days at 18% per annum. How much will be due at the end of 75 days? Use…

A: Simple interest refers to the method that is used for calculating the amount of interest on a…

Q: 33. How much will my $7,000 be after 15 years in a bank with an interest rate of 10%? OA. P28,240.74…

A: Initial value (I) = P7,000 Interest rate (r) = 0.10 Period (n) = 15 Years Value in 15 years = ?

Q: A couple found a house selling for $115.500. The taxes on the house are $1400 per year, and…

A: Down payment is the amount which needs to be given on the total cost of the house. It is a…

Q: 7500 was borrowed for a four-year term at 9% compounded quarterly. The te discounting the loan's…

A: Notes are issued based on the stated interest rate and they can be discounted back at lower interest…

Q: Calculate the actual sales since the sales and sales tax rung up together; assume a 6% sales tax.…

A: Sales Excluding sales tax = Sales including sales tax / (1+Rate of Sales Tax)

Q: (Cost of debt) Temple-Midland, Inc. is issuing a $1,000 par value bond that pays 7.9 percent annual…

A: Par Value is $1,000 The annual coupon rate is 7.9% Time to maturity is 15 years Price of bond is…

Q: The debt is amortized by the periodic payment shown. Compute (a) the number of p indicated. Debt…

A: Amortization of Debt Amortization is the process of repaying a debt through regular, Pre- agreed…

Q: Calculate the accrued interest(in$) and the total purchase price(in$) of the bond, purchase round…

A: Bonds are fixed-income assets that serve as a representation of investor loans to borrowers…

Q: Suppose a four period weighted average is being used to forecast demand. Weights for the periods…

A: Demand forecasting is the process of estimating the future customer demands based on the historical…

Q: n March 1, Wayne, Michaels bought 10 bonds from a particular company with a coupon rate of 9.725%.…

A: A bond is a source of financing money. Usually, companies issue bonds. One who issues the bond is…

Q: We are interested in finding out the minimum of several upper bounds and the maximum of several…

A: Arbitrage means making profit by taking advantage of price miss match in two markets. In short…

Q: Barclay wants to buy a car. The dealer offers a financing package consisting of a 6% APR compounded…

A: Monthly loan payment refers to the periodic repayment of loans. The monthly payment amount includes…

Q: Fill in the blank. A loan on which you pay a fixed amount of money for a set number of payments is…

A: There are various ways of providing loan such as Fixed instalment loan where it must be repaid with…

Q: Issued 10 year 6% bonds 3 years agon with a put option of 1000 exercisable at the end of year 3. the…

A: Bonds are fixed-income assets that serve as a representation of investor loans to borrowers…

Q: elling Price of Home Down Payment Rate of Interest Years $ 190,000.00 $ 50,000.00 7% 25 Required:…

A: Here, Corrected Table 15.1:

Q: kies has a book value of equity of $11,000.Residual income one year from now is expected to be…

A: Residual income model is based on residual income and residual income is income adjusted after the…

Q: Market value of No Leverage, Inc. Round your answer to the nearest dollar. $ Market value of…

A: Leverage changes the value of a firm. An unlevered firm has only equity in its capital structure…

Q: QUESTION 4 You are considering starting a new factory producing small electric heaters. Each unit…

Q: Prove the loan payment formula, shown below. PMT=Prn1−1+rn−nt Question content area bottom…

A: We have an equation given. We have to derive the equation for PMT.

Q: The First Bank of Lending lists the following APR for loans. Determine the APY, or effective…

A: The effective rate of interest is the effective rate of interest per annum including the effect of…

Q: Find the future value for the constant growth annuity where the rate of growth is 0.75%, the…

A: Concept. FV = A [(1+r)n - (1+g)n ] ÷ ( r-g) Where , FV = future value A = timely payment r =…

Q: Unida Systems has 32 million shares outstanding trading for $9 per share. In addition, Unida has $85…

A: Cost of capital is the percentage of expectation that shareholders want from the company, or if the…

Q: A design studio received a loan of $4,250 at 3.90% compounded semi-annually to purchase a camera. If…

A: The periodic payments are made at regular intervals to amortize or repay loan periodic, the payments…

Q: At time 0, if you have insider information of the stock price at the maturity. Then, option premium…

A: Option premium is composed of 2 components, Intrinsic Value and Time value. Intrinsic Value is the…

Q: On 3/30/22 you purchased 1 share of Ford Motor company for $9. On 7/1/22 you received a dividend of…

A: The actual rate of return on an investment or a group of investments over a specified evaluation…

Q: The risk-free return is 5%, Company x has a beta of 1.5 and an expected return of 20%. Calculate the…

A: Solution:- Capital Asset Pricing Model (CAPM) is an equity model which calculates the required rate…

Q: 4. On April 1, 2021, David gathered the following information of a bond from Bond Price Bulletin. If…

A: Bonds are traded in the market and there are sellers and buyers in the market and depending on that…

Q: We know that the 6 month zero bond price is $94.9; the 1 year coupon bond price is $90.0 with…

A: Zero coupon bond Bonds that pay no interest for life are called zero-coupon bonds. Buying…

Q: Fool Proof Software is considering a new project whose data are shown below. The equipment that…

A: Year 1 cash flow is calculated as follows:- Sales revenue - operating costs -{ (sales revenue -…

Q: Scott's student loan of $22,500 at 3.42% compounded quarterly was amortized over 3 years with…

A: A loan is a financial arrangement in which one or more people, companies, or other entities lend…

Q: 9. A 20-year maturity bond with a 10% coupon rate (paid annually) currently sells at a yield to…

A: Price of the bond today will be calculated on 20 year bond with yield to maturity of 9% and annual…

Q: Calculate the preferred and common dividend per share in dollars for the company but if there’s no…

A: Dividend per share refers to the amount that is paid by the company to the outstanding preferred…

Q: Expected return and standard deviation. Use the following information to answer the questions: a.…

A: Expected return, variance and standard deviation of each asset is calculated in excel

Q: ________ are assessments of political and economic events produced by specialized organizations of…

A: Companies that operate in multiple countries have to perform according to the laws, policies, and…

Q: te: Do not round intermediate calculations. Round your answers to the nearest cent. selling price…

A: Mortgage loans are quite common in buying homes and homes are bought easily paying only small…

Q: • What are the most commonly used primary investment criteria. Click all that apply NPV Capital…

A: Solution:- Investment criteria means the methods by which a firm decides which project to accept or…

Question

14.4
The demand for a certain drug in a hospital
has been increasing. For the past six
months, the following demand has been
observed. Use a three-month moving
average to make a forecast for July
Demand unit
15
18
22
23
27
26
Months
January
February
March
April
May
June
July
25
Forecast for July: (23+ 27+ 26)/3= (76)/3
= 25.3→ 25 demand units

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1: Introduction:

VIEW

Step 2: Calculation:

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Give typed explanation The demand for a product in the past 10 months were: 636, 463, 738, 744, 555, 486, 667, 518, 450, 682 Suppose a four-month moving average method is used to generate forecasts. What is the forecasted demand in month 6? Use at least 4 decimal places.
12. Calculating EAR Find the EAR in each of the following cases. Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) 7.8% Quarterly Monthly Daily Semiannually 15.3 12.4 11.4
The following table gives the number of pints of type A blood used at Damascus Hospital in the past 6 weeks: Week Of Pints Used 345 389 410 381 366 371 August 31 September 7 September 14 September 21. September 28 October 5 a) The forecasted demand for the week of October 12 using a 3-week moving average=pints (round your response to two decimal places).
May I ask for a solution and explanation to the problem for a better understanding. Thank you! 18. What is the average collection period for Bittergourd? a. 20.70 days b. 21.50 days c. 22.60 days d. 23.80 days
For the Hawkins Company, the monthly percentages of all shipments received on time over the past 12 months are 80, 82, 84, 83, 83, 84, 85, 84, 82, 83, 84, and 83. Construct a time series plot. What type of pattern exists in the data? Compare a three-month moving average forecast with an exponential smoothing forecast for α = 0.2. Which provides the better forecasts using MSE as the measure of model accuracy? What is the forecast for next month?
The following table gives the number of pints of type A blood used at Damascus Hospital in the past 6 weeks: WEEK OF PINTS USED August 31 360 September 7 372 September 14 410 September 21 381 September 28 366 October 5 374 a) The forecasted demand for the week of October 12 using a 3-week moving average = ____ pints (round your response to two decimal places).
QWE Inn has recorded the following number of rooms sold for the first quarter of the year: January 2100 February 2500 March 2550 Assume that you found an average monthly geometric rate of change in rooms sales from the month of January to March be equal to 5%. What would be your forecast of rooms sales for the month of April if sales are expected to continue increasing at the same rate?
JoAnn Manufacturing has projected the following sales for the coming year 01 02 03 04 Sales $53,475 $59,725 $ 68,775 $ 74,050 The company places orders each quarter that are 30 percent of the following quarter's sales and has a 30-day payables period. What is the payment of accounts for the third quarter? Mutiple Choice O $21.360.00 121687.50 $22.22969 $19,72750
Over the past six months, NTFLX has prices: Close Price 5/1/2022 197.44 6/1/2022 174.87 7/1/2022 224.9 8/1/2022 223.56 9/1/2022 224.36 10/1/2022 241.26 Date What is the geometric mean of the last five monthly returns? Excel file with the data is liked here B. 4.09% O 4.89% 3.50% O 5.19% 4 O 5.27%
Find the rate i. j12 equivalent to j1 = 10.08% ii. equivalent to j4 = 12% iii. j4 equivalent to joo = 9% iv. per month equivalent to 5% per half-year
Question No.3: Demand for a certain model of Camry car during the past 5 months is shown below: Months(Time) Demand January 190 February 260 March 310 April 290 May 110 Compute the forecast demand for each month, using single exponential smoothing with a = 0.05. Assuming that forecast for January is 220.
The monthly sales for Yazici Batteries, Inc., were as follows: Month Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec Sales 20 21 17 12 15 15 15 19 22 22 23 24 This exercise contains only parts b and c. b) The forecast for the next month (Jan) using the naive method = sales (round your response to a whole number). The forecast for the next period (Jan) using a 3-month moving average approach = sales (round your response to two decimal places). The forecast for the next period (Jan) using a 6-month weighted average with weights of 0.10, 0.10, 0.10, 0.20, 0.20, and 0.30, where the heaviest weights are applied the most recent month = sales (round your response to one decimal place). Using exponential smoothing with a = 0.35 and a September forecast of 18.00, the forecast for the next period (Jan) = sales (round your response to two decimal places). Using a method of trend projection, the forecast for the next month (Jan) = sales (round your response to two decimal places). c) The method…