Data collected on the yearly registrations for a Six Sigma seminar at the Quality College are shown in the following table.4 5 6 7 8 9 10 114 9 9 8 11 11 14 17YearOA A3-year weighted moving average is significantly better.B. A 3-year moving average is significantly better.OC The forecasts are about the same.1Registrations (000) 42735This exercise contains only part cc) The graph to the right shows the actual registrations, registrations forecasted using a 3-year moving average, and registrations forecasted using a 3-year weighted moving average. Whichmethod seems to be able to forecast better? (Refer to the legend or hover your mouse over any plot)1812-161514-13-12-1110-BIB75-4-342-Demand235Year9 1611 12Blue Line = Actual RegistrationsRed Line = 3-year Moving AveragePink Line = 3-year Weighted Moving Average

Forecasting includes predicting the sales or demand of the future. There are various methods of…

Answered: c) The graph to the right shows the…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section: Chapter Questions

Problem 42P: The file P13_42.xlsx contains monthly data on consumer revolving credit (in millions of dollars)...

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Similar questions

Under what conditions might a firm use multiple forecasting methods?
The file P13_42.xlsx contains monthly data on consumer revolving credit (in millions of dollars) through credit unions. a. Use these data to forecast consumer revolving credit through credit unions for the next 12 months. Do it in two ways. First, fit an exponential trend to the series. Second, use Holts method with optimized smoothing constants. b. Which of these two methods appears to provide the best forecasts? Answer by comparing their MAPE values.
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?
Week Sales1 27502 31003 32504 28005 29006 30507 33008 31009 295010 300011 320012 3150Develop a three-week moving average. A.What is the forecast for week 5? (Make sure no decimal place and no comma. EX: 1234) B.What is the value of MSE (mean squared error) with regard to a three-week moving average? (Make sure no decimal place and no comma. EX: 1234) C.Develop the exponential smoothing with the alpha value of 0.20. What is the forecast for week 5? (Make sure no decimal place and no comma. EX: 1234) D.What is the value of MSE (mean squared error) with regard to the exponential smoothing? (Make sure no decimal place and no comma. EX: 1234) E.Which method is more accurate? (1 for Moving average, 2 for Exponential Smoothing)
The following table shows the quarterly sales (RM'000) for Afeef Café for the past 3 years. Quarter Year 2 3 4 2019 11 17 10 18 2020 19 24 17 29 2021 23 38 31 33 Based on the above data. (c) Forecast the sales for the third quarter of 2022.
Dic 2 - Time Series Analysis and F eBook Problem 6-01 (Algorithmic) Consider the following time series data. Thm Week 1 2 3 4 5 6 Value 20 13 15 11 19 13 Using the naïve method (most recent value) as the forecast for the next week, compute the following measures of forecast accuracy. a. Mean absolute error. If required, round your answer to one decimal place. b. Mean squared error. If required, round your answer to one decimal place. c. Mean absolute percentage error. If required, round your intermediate calculations and final answer to two decimal places. % d. What is the forecast for week 7? If required, round your answer to two decimal place.
12-1. The Hartley-Davis motorcycle dealer in the Minneapolis- St. Paul area wants to be able to forecast accurately the de- mand for the Roadhog Super motorcycle during the next month. From sales records, the dealer has accumulated the data in the following table for the past year. Month January February March April Мay June Motorcycle Sales 7 10 8 7 12 July August September 10 11 12 October 10 November December 14 16 a Compute a three-month moving average forecast of demand for April through January (of the next year). b. Compore a five-month moving average forecast for June drough January. c. Compare the two forecasts computed in parts (a) and (b) using MAD. Which one should the dealer use for January of dhe next year?
Suppose these data show the number of gallons of gasoline sold by a gasoline distributor in Bennington, Vermont, over the past 12 weeks. Sales (1,000s of gallons) Week 1. 17 22 20 4 24 18 6. 17 7 21 8 19 23 10 21 11 15 12 23 (a) Compute four-week and five-week moving averages for the time series. 4-Week 5-Week Time Series Moving Moving Average Forecast Week Value Average Forecast 1 17 22 20 4 24 5 18 6. 17 2.
The following gives the number of pints of type Bblood used a t Woodlawn Hospital in the past 6 weeks: a) Forecast the dema nd for the week of October 12 using a3-week moving average.b) Use a 3-week weighted moving average, with weights of .I , .3,and .6, using .6 for the most recent week. Forecast demand forthe week of October 12.c) Compute the forecast for the week of October 12using exponentialsmoothing with a forecast for August 31 of 360 and a = .2
Data collected on the yearly registrations for a Six Sigma seminar at the Quality College are shown in the following table: Year -1 2 Registrations (000) 5.0 5.0 Year Forecast 4 4.3 This exercise contains only parts a and b. a) Using a 3-year moving average, the forecasted registrations (in thousands) for years 4 through 12 are (round your responses to one decimal place): 5 4.6 4 3 3.0 5 6 6.6 7 8 4 5 6 9 10 6.0 11.0 9.0 7.0 9.0 13.0 16.0 6 7 8.7 8 9 7 9 8.3 b) Using a 3-year weighted moving average in which the registrations in the most recent year are given a weight of 2, and registrations in the other 2 years are each given a weight of 1, the forecasted registrations (in thousands) for years 4 through 12 are (round your responses to one decimal place): Year Forecast 8 10 9.6 9 11 12.6 10 12 15.3 11 11 17.0 12
2-1 Sales of Cool-Man air conditioners have grown steadily during the past 5 years: DEMAND ADV SEPENT 2017 450 1200 2018 495 1650 2019 518 1710 2020 563 1860 2021 584 1960 Predict the demand of Year 2021 by: a. Using 3 moving average b. Using exponential smoothing with alpha = 0.30. The sales manager had predicted, before the business started, that year 1l's sales would be 410 air conditioners. c. Using the relationship between the sales and advertainment spent Which of the above value is the best predicated demand for Year 2021? 2-2 Three trials for the company stock control system were calculated as shown in the table below. The holding cost, shortage cost and ordering costs have been estimated to be $220, $80 and $170. The company has a high competition therefore they need to keep their customer and attract more new customers. Strategy 1 Strategy 2 Strategy 3 Reorder Quantity 200 600 400 Reorder Level 300 400 200 Lead Time 1 Number of days when stock out is occurred 20 12 Number of…
The table shows the values found in the error analysis. What method of forecasting would be best to use? What is the forecasted value? MSE forecast for week 13 Time Series 1.08 14.76 3-week MA 3.04 13.67 exp smoothing 11.04 9.5 Group of answer choices A.) Time Series, forecasted value = 14.76 B.) 3-week MA, forecasted value = 13.67 C.) exp smoothing, forecasted value = 9.5 D.) Time Series, forecasted value = 1.08 E.) 3-week MA, forecasted value = 3.04 F.) exp smoothing, forecasted value = 11.04

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