1. Discuss the arguments for using a large smoothing constant for exponential smoothing instead of a small one. Under what conditions would each be better? Why?
2. Describe in your own words why using the MAD is better for describing the forecast error than is the MFE. What is the major use of each? Should they really be used together? Why or Why not?
3. Given the following data:
a. Calculate the four weighted moving average for periods 5 through 9 using weights of 0.1, 0.2, 0.3 and 0.4 where the 0.4 is the weight for the most recent period.
b. Calculate the forecasts for periods 4 through 9 using 3 month moving average.
c. Use the regression equation to find the forecast for period 9. To find the equation you can use Excel or any other software of your preference. A tutorial is available for you if you wish to use it.
4. A forecasting method resulted in the following forecasts shown by the data in the following table.
a. Use the data to calculate the MAD.
b. Find a regression equation for the demand data.
c. Use the regression equation to forecast demand for period 11.
d. Is the regression method preferred over the method used? Why or why not?
Recently Asked Questions
- The chapter discusses the fallacy of composition in which you can't compare household debt (which must be paid off) with government debt (which can be rolled
- On January 1, 2018, Instaform, Inc., issued 12% bonds with a face amount of $55 million, dated January 1. The bonds mature in 2037 (20 years). The market yield
- What influence does Judaism have today in society?