Chapter 8 Problems

Chapter 8 Problems - low value. Given the following...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 8 Problems 2. Lauren’s Beauty Boutique has experience the following weekly sales: Week Sales 1 432 2 396 3 415 4 458 5 460 Forecast sales for week 6 using the naïve method, a simple average, and a three-period moving average. 5. The manager of a small health clinic would like to use exponential smoothing to forecast demand for laboratory services in the facility. However, she is not sure whether to use a high or low value of “a”. To make her decision, she would like to compare the forecast accuracy of a high and low “a” on historical data. She has decided to use an “a” = 0.7 for the high value and “a” = 0.1 for the
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: low value. Given the following historical data, which do you think would be better to use? Week Demand (lab requirements) 1 330 2 350 3 320 4 370 5 368 6 343 7. The following historical data have been collected representing sales of a product. Compare forecasts using a three-period moving average, exponential smoothing with a a = 0.2, and linear regression. Using MAD and MSE, which forecasting model is best? Are your results the same using the two error measures? Week Demand 1 20 2 31 3 36 4 38 5 42 6 40...
View Full Document

Ask a homework question - tutors are online