quant anaylisis

# quant anaylisis - 2. Nation Scan, Inc., sells radio...

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21. Two different forecasting techniques (F1 and F2) were used to forecast demand for cases of bottled water. Actual demand and the two sets of forecasts are as follows: PREDICTED DEMAND Period Demand F1 F2 1 68 66 66 2 75 68 68 3 70 72 70 4 74 71 72 5 69 72 74 6 72 70 76 7 80 71 78 8 78 74 80 a. Compute MAD for each set of forecasts. Given your results, which forecast appears to be more accurate? Explain b. Compute the MSE for each set of forecasts. Given your results, which forecast appears to be more accurate? c. In practice, either MAD or MSE would be employed to compute forecast errors. What factors might lead a manager to choose one rather than the other? d. Compute MAPE for each data set. Which forecast appears to be more accurate? 25. The Manager of a seafood restaurant was asked to establish a pricing policy on a lobster dinners. Experimenting with prices produced the following data: Average Number Average Number Sold per Day, Y Price, X Sold per Day, Y Price, X 200 \$6.00 155 \$8.25 195 6.50 156 8.50 188 6.75 148 8.75 180 7.00 140 9.00 170 7.25 133 9.25 162 7.50 160 8.00 a. Plot the data and a regression line on the same graph. b.
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## This note was uploaded on 04/04/2011 for the course ACCOUNTING 301 taught by Professor Mr.smith during the Spring '11 term at Cleveland State CC.

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quant anaylisis - 2. Nation Scan, Inc., sells radio...

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