Statistical Techniques in Business and Economics
Statistical Techniques in Business and Economics
18th Edition
ISBN: 9781260579611
Author: Douglas Lind; William Marchal; Samuel Wathen
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 8, Problem 23CE
To determine

Give the marketing research company that gives the more useful test results.

Give the reason for why the particular marketing research company that gives the more useful test results.

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According to Thomson Financial, last year the majority of companies reporting profits had beaten estimates. A sample of 149 companies showed that 105 beat estimates, 21 matched estimates, and 23 fell short.
Consider  a business owner, how would you use methodology and the data results to increase sales or improve overall profitability? What are some of your recommendations?
Jane White has recorded the following sales figures for last year for herbusiness: January, $35,645; February, $35,456; March, $31,270; April,$32,129; May, $34,456; June, $35,256; July, $36,218; August, $35,456;September, $34,250; October, $32,156; November, $30,125; December,$32,275. She wants to select from one of three models: a 3-month movingaverage, a weighted moving average (she believes that the weightsshould be 0.2, 0.3, and 0.5), and an exponential smoothing average inwhich she uses an α of 0.2 and an assumed forecast for January of Year 1of $35,000.a. Construct a table that shows each of these forecasts for the current year andprovide the forecast for January of Year 2.b. Using the available data and your forecasts, which model do you suggest thatJane use for her business?
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