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m303 Forecasting problem 10-11

m303 Forecasting problem 10-11 - What is the best demand...

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Forecasting problem The XYZ company has developed a new washing machine for consumers and wants to come up with a forecast for demand for the item. A survey was conducted on purchase intention and the results of this survey are shown on the LEFT. On the right are the correction factors (in percents) for both durable and non-durable products.
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Unformatted text preview: What is the best demand forecast for this new washing machine? Survey Non-Durable Durable Results 30% Definitely will Buy 40 12 20% Probably will Buy 35 8 25% Might or might not buy 25 5 15% Probably will not buy 12 4 10% Definitely will not buy 10 2 Answer: .3(.12) + .2(.08) + .25(.05) + .15(.04) + .1(.02) = .0725 or about 7.3%...
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