•..• 4.34 Boulanger Savings and Loan is proud of its long tra-dition in Winter Park, Florida. Begun by Michelle Boulanger22 years after World War II, the S&L has bucked the trend offinancial and liquidity problems that has repeatedly plaguedthe industry. Deposits have increased slowly but surely over theyears, despite recessions in 1983, 1988, 1991, 2001, and 2010. Ms.Boulanger believes it is necessary to have a long-range strategicplan for her firm, including a 1-year forecast and preferably evena 5-year forecast of deposits. She examines the past deposit dataand also peruses Florida's gross state product (GSP) over the same44 years. (GSP is analogous to gross national product [GNP] buton the state level.) The resulting data are in the following table.YEARDEPOSITS?GSPbYEARDEPOSITS?GSpb1.25.413.501.2.24.414.951.2.24.5151.701.24.26.7162.31.6.25.9172.81.5.301.0182.81.67.311.4192.71.78.321.7203.91.99..241.3214.91.910.261.2225.32.311.251.1236.22.512.33.9244.12.8(continued)io io YEARDEPOSITSGSP6YEARDEPOSITSaGSP6254.52.93531.14.1266.13.43631.74.1277.73.83738.54.02810.14.13847.94.52915.24.03949.14.63018.14.04055.84.53124.13.94170.14.63225.63.84270.94.63330.33.84379.14.73436.03.74494.05.0a In $ millions.b In $ billions.a) Using exponential smoothing, with a = .6, then trend analysis,and finally linear regression, discuss which forecasting modelfits best for Boulanger's strategic plan. Justify the selection ofone model over another.b) Carefully examine the data. Can you make a case for exclud-ing a portion of the information? Why? Would that changeyour choice of model? PX

a) Using exponential smoothing, with a = .6, then trend analysis, and finally linear regression, discuss which forecasting model fits best for Boulanger's strategic plan. Justify the selection of one model over another. b) Carefully examine the data. Can you make a case for exclud- ing a portion of the information? Why? Would that change your choice of model? PX

a) Using exponential smoothing, with a = .6, then trend analysis, and finally linear regression, discuss which forecasting model fits best for Boulanger's strategic plan. Justify the selection of one model over another. b) Carefully examine the data. Can you make a case for exclud- ing a portion of the information? Why? Would that change your choice of model? PX

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

See similar textbooks

Related questions

Q: er accuracy if MAD and MSE are used?

A: Linear trend equation simply calculating the forecast based on the equation. MAD is the average of…

Q: My App is a small but growing start-up that sees demand for several of its apps increasing quickly.…

A: Double exponential smoothing is a forecasting model which identify the forecasting with the…

Q: The following table contains the demand from the last 10 months: ACTUAL DEMAND 31 33 34 42 45 44 42…

A: An extension of the fundamental exponential smoothing approach that takes data trends into account…

Q: Complete the forecasting worksheets for: Naïve Average Moving Average Weighted Moving Average using…

A: Weighted Moving Average using the weights of .8, .15, and .05 ExponA use an alpha level of .75ExponB…

Q: What is the project duration?

A: As per Bartleby guidelines, we can only solve one question at a time...Kindly upload the other…

Q: which of the following are charactersitics of qualitative forecasting methods? 1. Function of past…

A: Companies use the qualitative forecasting method when the company is not able to make decisions…

Q: Add your personal life experiences or engagement on topic of forecasting and Quality management.

A: Forecasting and Quality Management. Forecasting is that the process of estimate and predicate about…

Q: 1. Which of the following forecasting methods is (are) more appropriate for the demand given in this…

A: In the process of forecasting, known data is used to model historical trends across time and make…

Q: Using your own words, describe the drawbacks of the moving average forecasting model and the…

A: Definitions Moving average: - A forecast which is made by taking the average or weighted average of…

Q: Two different forecasting techniques (F1 and F2) were used to forecast demand for cases of bottled…

A: Find the given details below: Given details:Predicted…

Q: Using trend-adjusted exponential smoothing, Forecasts (F₂), Trend (T₂), and Forecasts Including…

A: Forecasting is a technique used to predict future outcomes on the basis of past data. In businesses…

Q: Cinema HD an online movie streaming service that offers a wide variety of award-winning TV shows,…

A: This question is related to the topic- Forecasting and This topic falls under Business-Operations…

Q: Identify the major differences between qualitative and quantitative forecasting.

A: Forecasting can be defined as the technique which predicts the future information based on…

Q: brand Managemen nterested in estin ing luture sales voluf to delern y the hew bran ace it with…

A: Determine the regression equation:

Q: Sales of Volkswagen's popular Beetle have grown steadily at auto dealerships in Nevada during the…

A: Given table- Year Sales 1 450 2 502 3 520 4 570 5 575

Q: Discuss the integration of sustainability goals and Environmental, Social, and Governance (ESG)…

A: Sustainability has emerged as a crucial guiding concept for all types of enterprises, organisations,…

Q: The MAD for Method 1 = thousand gallons (round your response to three decimal places).

A: WeekActualForecast10.680.85211.05310.9741.041.22

Q: snip

A: Forecasting is the method of making predictions of the future based on past and present information…

Q: Calculate the 2-month Moving Average Forecast for sales from March/2019 to a) January/2019 and enter…

A: Below is the solution:-

Q: 2) Develop forecasts for FY2023 using the two forecasting methods currently employed by Throx. a)…

A: Weighted Moving Average: Here different weights can be assigned to different periods and then a…

Q: 1-What is the difference between qualitative forecasting techniques and quantitative forecasting…

A: Forecasting is the process of identifying trends in order to predict future outcomes. Forecasting is…

Question

•..• 4.34 Boulanger Savings and Loan is proud of its long tra-
dition in Winter Park, Florida. Begun by Michelle Boulanger
22 years after World War II, the S&L has bucked the trend of
financial and liquidity problems that has repeatedly plagued
the industry. Deposits have increased slowly but surely over the
years, despite recessions in 1983, 1988, 1991, 2001, and 2010. Ms.
Boulanger believes it is necessary to have a long-range strategic
plan for her firm, including a 1-year forecast and preferably even
a 5-year forecast of deposits. She examines the past deposit data
and also peruses Florida's gross state product (GSP) over the same
44 years. (GSP is analogous to gross national product [GNP] but
on the state level.) The resulting data are in the following table.
YEAR
DEPOSITS?
GSPb
YEAR
DEPOSITS?
GSpb
1
.25
.4
13
.50
1.2
.24
.4
14
.95
1.2
.24
.5
15
1.70
1.2
4
.26
.7
16
2.3
1.6
.25
.9
17
2.8
1.5
.30
1.0
18
2.8
1.6
7
.31
1.4
19
2.7
1.7
8
.32
1.7
20
3.9
1.9
9.
.24
1.3
21
4.9
1.9
10
.26
1.2
22
5.3
2.3
11
.25
1.1
23
6.2
2.5
12
.33
.9
24
4.1
2.8
(continued)
io io

YEAR
DEPOSITS
GSP6
YEAR
DEPOSITSa
GSP6
25
4.5
2.9
35
31.1
4.1
26
6.1
3.4
36
31.7
4.1
27
7.7
3.8
37
38.5
4.0
28
10.1
4.1
38
47.9
4.5
29
15.2
4.0
39
49.1
4.6
30
18.1
4.0
40
55.8
4.5
31
24.1
3.9
41
70.1
4.6
32
25.6
3.8
42
70.9
4.6
33
30.3
3.8
43
79.1
4.7
34
36.0
3.7
44
94.0
5.0
a In $ millions.
b In $ billions.
a) Using exponential smoothing, with a = .6, then trend analysis,
and finally linear regression, discuss which forecasting model
fits best for Boulanger's strategic plan. Justify the selection of
one model over another.
b) Carefully examine the data. Can you make a case for exclud-
ing a portion of the information? Why? Would that change
your choice of model? PX

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Step 5

Trending now

This is a popular solution!

Step by step

Solved in 5 steps with 8 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.

Similar questions

Which type of forecasting approach, qualitative or quantitative, is better?
what are gannt charts best used for
Asvnch Problem - Statistical Forecasting Data Set – Eunice BC Fashion Monthly Sales, in million units. Year Total Sales Year Total Sales 2010 38 2016 43 2011 41 2017 40 2012 40 2018 45 2013 45 2019 47 2014 50 2020 42 2015 42 2021 48 Questions: a. Find the naïve forecast. b. Use the 3 years moving average forecast. c. Have a 5 years weighted moving average. d. Develop forecast using exponential smoothing with a = 0.2. e. Determine the trend line equation and present the forecast. f. Find the best forecast for year 2022. Note: Use the first 5 years as the training samples and the last 5 years as the forecasting samples. Solve it in Excel Sheet/Sheet with Equations as possible.
ontrast the reactive and proactive approaches to forecasting. Give several examples of types of organizations or situations in which each type is used.
Hi, I need help with solving for the following values (boxed). Thank you.
MSE answer for part a = 5.95 is incorrect. Please do recalculations with the correct answer. also the rest of the question was not answered so here it is: Use ? = 0.2 to compute the exponential smoothing values for the time series. Week Time SeriesValue Forecast 1 19 2 14 3 17 4 12 5 18 6 15 Compute MSE. (Round your answer to two decimal places.) MSE = What is the forecast for week 7? (Round your answer to two decimal places.) Use ? = 0.4 to compute the exponential smoothing values for the time series. Week Time SeriesValue Forecast 1 19 2 14 3 17 4 12 5 18 6 15
(Use excel to show formulas used) Use regression or simple exponential smoothing with the following data. For exponential smoothing, assume the forecast for year 1 was the same as the actual and use an alpha of 0.7. Year Sales 1 290 2 340 3 400 4 410 5 400 Forecast Year 6 sales. Compute MAD.
What are the advantages and disadvantages of aggregating deman from a forecasting view? Are there other things that should be considered when going from multiple DC (Distribution Centers) to a DC?
Heres a zoom in photo of of the problem/ Please solve
Practice Problem: Usins the data on a hospital’s revenue: (1) Use simple exponential smoothing to make predictions for the hospital’s revenues during the next four quarters with α = 0.30. (2) Use Trend-Adjusted Exponential Smoothing(i.e. Holt’s method) to make forecasts for the hospital’s revenues during the next four quarters. Assume α = 0.05, β = 0.65, initial revenue forecast = 1209285.75 and initial trend forecast = 15714. (3) Using least-squares regression with seasonal index decomposing method, forecast the hospital’s revenues during the next four quarters.
K 2. Setting an advertising budget is a forecasting exercise. What are the fundamental principles that should be adhered to when undertaking forecasting? Be conservative and use the best evidence-based technique available Be innovative and use multiple methods and choose the optimal one Be conservative and use multiple evidence-based techniques, taking the average result Be innovative and use multiple evidence-based techniques, taking the average result