please as soon as possible . thank you Monthly sales in a company for a seven-period (Jan-July) were as follows: 19, 18, 16, 14, 17, 19, respectively. Thesimple moving average method forecasts August sale volume as 17. Which of the following is true?O a. none is trueO b. five-month moving average is usedO c. four-month moving average is usedO d. two-month moving average is usedO e. three-month moving average is used

Forecasting is the process of prediction in which sales demand is estimated using historic…

Answered: Monthly sales in a company for a…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section: Chapter Questions

Problem 40P: The Baker Company wants to develop a budget to predict how overhead costs vary with activity levels....

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Similar questions

Under what conditions might a firm use multiple forecasting methods?
The file P13_22.xlsx contains total monthly U.S. retail sales data. While holding out the final six months of observations for validation purposes, use the method of moving averages with a carefully chosen span to forecast U.S. retail sales in the next year. Comment on the performance of your model. What makes this time series more challenging to forecast?
The Baker Company wants to develop a budget to predict how overhead costs vary with activity levels. Management is trying to decide whether direct labor hours (DLH) or units produced is the better measure of activity for the firm. Monthly data for the preceding 24 months appear in the file P13_40.xlsx. Use regression analysis to determine which measure, DLH or Units (or both), should be used for the budget. How would the regression equation be used to obtain the budget for the firms overhead costs?
The file P13_42.xlsx contains monthly data on consumer revolving credit (in millions of dollars) through credit unions. a. Use these data to forecast consumer revolving credit through credit unions for the next 12 months. Do it in two ways. First, fit an exponential trend to the series. Second, use Holts method with optimized smoothing constants. b. Which of these two methods appears to provide the best forecasts? Answer by comparing their MAPE values.
Monthly sales in a company for a seven-period (Jan-July) were as follows: 19, 18, 16, 14, 17, 19, respectively. The simple moving average method forecasts August sale volume as 17. Which of the following is true? a. four-month moving average is used O b. three-month moving average is used none is true d. five-month moving average is used two-month moving average is used е.
A newly operated company producing household items would want to forecast its sales volume for the next month. It has been in operation for ten (10) months now. For the past ten (10) months, forecast and sales data for its top selling Item A are as follow: Time Period Forecasted Value Actual Sales (Quantity) 10th month 405 345 9th month 400 380 8th month 410 400 7th month 370 375 6th month 330 360 5th month 320 325 4th month 320 315 3rd month 305 300 2nd month 290 295 1st month 300 280 The operations manager observes the fluctuations on the sales quantity over the 10-month period that the company is in operation. To forecast for the 11th month, the team decided to evaluate options on what forecasting method to use. Their options are: To use the Moving Average Method using the sales data for the past 10 months, To use the Exponential Smoothing Average assigning a smoothing constant of .6 and To use the Trend-adjusted Exponential Smoothing assigning smoothing constants α =…
Monthly sales in a company for a seven-period (Jan-July) were as follows: 19, 18, 16, 14, 17, 19, respectively. The simple moving average method forecasts August sale volume as 17. Which of the following is true? O a. four-month moving average is used O b. none is true O c. five-month moving average is used O d. three-month moving average is used O e. two-month moving average is used
A. Find the tracking signal for each month. B. Does the model provide acceptable answers!
You have a data set that includes time period and past sales data, and you want to use a time series forecasting technique. Which of the following forecasting methodologies is considered a time series forecasting technique? a.Group of answer choices b.Delphi method c.Simple movement smoothing d.Weighted moving average e.Simulation f.Exponential averaging
In the Atlanta area, the number of daily calls for the repair of Speedy copy machines has been recorded as follows: October Calls 1 92 2 127 3 106 4 165 5 125 6 111 7 178 8 97 Prepare a three-period moving-average forecast for periods 4-8. What is the error on each day? Prepare a three-period weighted moving average forecast for periods 4-8 using weights of w1=.5, w2=.3, w3=.2 Which of the two forecasts is better? (Use CFE to calculate the better method)
Which of the following smoothing constants would make an exponential smoothing forecast equivalent to a naive forecast? a. 0 b. divided by the number of periods C. 0.5 d . 1.0 e. cannot be determined
Forecast error is calculated as: Actual - Forecast O Forecast - Actual (Forecast - Actual) ^ 2 Absolute (Actual - Forecast) (Actual - Forecast) ^ 2

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