Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Chapter 5, Problem 2.1CE
To determine
To compare the forecast accuracy of two alternative
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Students have asked these similar questions
Historical demand for Peeps is as displayed in the table.
Month Demand
January 11
February 18
March 31
April 39
May 44
June 53
July 67
August 82
September 96
Develop forecasts from June through October using these techniques: Holt's method with alpha=0.2
and beta=0.1. For Holt's model, the level and trend for May are assumed to be 44 and
12. Judge which forecast method is the best based on MAD.
Choose one of the following forecasting methods discussed in this chapter: last-value, averaging, moving-average, or exponential smoothing. Identify the conditions when the method is most appropriate to use and give an example of an application of this method.
Identify and briefly describe the two general forecasting approaches.
Chapter 5 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Ch. 5 - The forecasting staff for the Prizer Corporation...Ch. 5 - Prob. 2ECh. 5 - Metropolitan Hospital has estimated its average...Ch. 5 - Prob. 4ECh. 5 - A firm experienced the demand shown in the...Ch. 5 - The economic analysis division of Mapco...Ch. 5 - The Questor Corporation has experienced the...Ch. 5 - Bell Greenhouses has estimated its monthly demand...Ch. 5 - Savings-Mart (a chain of discount department...Ch. 5 - Prob. 1.1CE
Ch. 5 - Plot the logarithm of arrivals for each...Ch. 5 - Logarithms are especially useful for comparing...Ch. 5 - Prob. 1.4CECh. 5 - In attempting to formulate a model of the...Ch. 5 - Estimate the double-log (log linear) time trend...Ch. 5 - Prob. 2.1CECh. 5 - Prob. 3.1CECh. 5 - Prob. 3.2CECh. 5 - Prob. 3.3CE
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- Using the trend adjusted projected method and given the following S15-0.991 T15x 115=5.33+(0.01387)t The forecast demand for period 15?arrow_forwardThe problem is based on the following data given. Observations of the demand for a certain part stocked at a parts supply depot during the calendar year 2013 were ( as shown ). Determine the one-step-ahead forecasts for the demand for January 2014 using 3‑, 6-, and 12-month moving averages.arrow_forwardComprehensively state the criteria and process of selecting appropriate models for time series forecasting.arrow_forward
- Question 3 The number of tons of brake assemblies received at an auto parts distribution center last month was 625. The forecast tonnage was 650 for last month. The company uses a simple exponential smoothing model with a smoothing constant of 0.46 to develop its forecasts. What will be the company's forecast for the next month? Add your answerarrow_forwardThe Carbondale Hospital is considering the purchase of a new ambulance. The decision will rest partly on the anticipated mileage to be driven next year. The miles driven during the past 5 years are as follows: Year Mileage 1 3,050 a) Using a 2-year moving average, the forecast for year 6 = miles (round your response to the nearest whole number). b) If a 2-year moving average is used to make the forecast, the MAD based on this = miles (round your response to one decimal place). (Hint: You will have only 3 years of matched data.) c) The forecast for year 6 using a weighted 2-year moving average with weights of 0.45 and 0.55 (the weight of 0.55 is for the most recent period) = miles (round your response to the nearest whole number). The MAD for the forecast developed using a weighted 2-year moving average with weights of 0.45 and 0.55 = d) Using exponential smoothing with a = 0.20 and the forecast for year 1 being 3,050, the forecast for year 6 = miles (round your response to one decimal…arrow_forwardThe use of quarterly data to develop the forecasting model Yt = a +bYt-1 is an example of which forecasting technique?arrow_forward
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