What is the appropriate type of forecasting method to use in the following scenario? Explain why you chose this method. Holiday Inn, Inc. is attempting to predict the demand next year for motel rooms, based on a history of demand observations.

What is the appropriate type of forecasting method to use in the following scenario? Explain why you chose this method. Holiday Inn, Inc. is attempting to predict the demand next year for motel rooms, based on a history of demand observations.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.6: Moving Averages Models

Problem 22P: The file P13_22.xlsx contains total monthly U.S. retail sales data. While holding out the final six...

See similar textbooks

Related questions

Q: Don't use Ai

A: No, filing such expenses cannot be done because they are not your real expenses. Stealing anything,…

Q: Draw a simple organizational chart (organogram) for the company in screenshot attached thanks for…

A: The organizational chart for Target Enterprises depicts a hierarchical structure with a Managing…

Q: Scores on an employee performance evaluation are normally distributed with a mean of 75 and a…

A: Step 1: a) Consider a random variable is x, which defines the performance evaluation score of a…

Q: Consider the following example. A company that makes industrial pumps wants to prepare a master…

A: A manufacturing schedule for pumps in June and July is shown in Figure 12-11's master scheduling…

Q: TATA Motors is considering three sites - A, B, and C - at which to locate a factory to build its…

A: Annualized Fixed Cost: The constant cost each year, regardless of the number of vehicles…

Q: HOW TO WRITE A CLINICAL OPERATIONS REPORT AFTER THE SHIFT HAS ENEDED

A: Start by gathering all the necessary information that needs to be included in the report. This…

Q: Imagine the following situation: You have been actively looking for a job for more than two months…

A: Here's the step by step explanation along with the examples to help understand the context Step 1:…

Q: Question 2 Implementing Just-in-Time (JIT) Methodology: A Case Study of Efficient Waste Reduction…

A: Implementing Just-in-Time (JIT) Methodology: A Case Study of Efficient Waste Reduction at XYZ…

Q: What makes pharmacy technicians at Cigna Accredo pharmacy stand out above others in the same…

A: Here are some references that support the points discussed:Specialized Training and…

Q: How do you think leaders can maintain ethical standards during challenging times, such as economic…

A: Leaders can maintain ethical standards during challenging times by upholding the organization's core…

Q: After graduation, you take a position at Top-Slice, a well-known manufacturer of golf balls. One of…

Q: What are the stated goals and objectives of Cigna Accredo pharmacy? Describe the size, structure,…

A: FEEL FREE TO ASK FOR CLARIFICATIONS

Q: Do not use Ai

A: A camera store sells and rents out a special type of camera that becomes obsolete at the end of the…

Q: 9 A company had tax-deductible cash expenses of $900,000 last year, and the tax rate was 25%. What…

A: Step 1: Identify the given informationTax-deductible cash expenses: $900,000Tax rate: 25%Step 2:…

Q: Don't use Ai

A: I hope you find this helpful. If you have any question or clarification, do not hesitate to reach…

Q: Consider a process consisting of five resources that are operated eight hours per day. Demand…

A: To analyze the bottleneck and calculate the flow rate for each product, we will follow these…

Q: In this problem, your company is a distributor of products. You serve as an inventory manager for…

A: Question 1: Compute the best LTL shipping quantity q∗ using the EOQ formula The EOQ (Economic Order…

Q: A company is designing a product layout for a new product. It plans to use this production line…

A: I Will walk you through every query. Network Diagram +-----+ | A | +-----+…

Q: Don't use Ai

A: Comprehensive Analysis of HRMS Topics: ERP and Talent Management SuitesIntroductionHuman Resource…

Q: Problem 1: Three products can be manufactured on any of four machines. The unit production costs (in…

A: Let's denote the number of units of each product produced on each machine as follows:X11, X12, X13:…

Q: Aspen Plastics produces plastic bottles to customer order. The quality inspector randomly selects…

A: Step 1:Step 2: Step 3: Step 4:

Q: Answer the following question based on the image below: 1- state objective function 2- state the…

A: Step 1: Given data :The objective is to minimize the total transportation cost. Now, denote the…

Q: Question 1 Consider again managing inventory for product 101, provided by Supplier A. Recall…

A: Learning and Behavioral Adjustments: Customers might anticipate stockouts and backorders, leading…

Q: Can you guys help me on this? Thank you! Describe the group processes that are occurring in a team…

A: Group Processes in My TeamIn the team I belong to, several group processes are at play, shaping our…

Q: Question Viewer 's, Inc., makes custom western shirts. The shirts could be flawed in various ways,…

Q: 1.Draw a figure that shows clearly the total cost C(q) of the LTL shipment as a function of…

A: graph for this function.The graph above illustrates the total cost C(q) of LTL shipment as a…

Q: 2. List the 7 concepts that are necessary for an effective TQM program. How are these related to…

A: Total Quality Management (TQM) is a comprehensive approach aimed at improving organizational…

Q: Betty's Bakery has the following standard cost sheet for one unit of its most popular cake: Direct…

A: Part 2:Explanation:Step 1: Calculate the direct materials price varianceFormula: (Standard Price -…

Q: Assume that you have been asked by the owner of your medium-sized import and export company (200+…

A: To develop a more competitive total reward program for different jobs in a medium-sized import and…

Q: Yellow Press, Inc., buys paper in 1,500-pound rolls for printing. Annual demand is 3 comma…

Q: Don't use Ai and chatgpt. Answer in all options with explanation

A: Trends that will continue to provide opportunities for the next decadePayment Technologies,…

Q: Increasing Capacity tends to: A. reduce the Needed Complement B. reduce the number of…

A: In operations management, capacity refers to the maximum amount of work that an organization is…

Q: Outline: Propose a Business Plan for solution and for implementation for evnt planning extension.…

A: Business RequirementsClient Management System IntegrationRequirement: Integrate a comprehensive…

Q: If you are the section fire warden in a facility what role/ responsibilities do you have in the…

A: Answer well explained above

Q: Don't use chatgpt

A: OVERALL EXPLANATION: 1. Project Scheduling and Activity Analysis:The project involves multiple…

Q: What tosay when an interviewer asks about tell me about yourself

A: Begin by providing a brief introduction about yourself. This could include your name, where you're…

Q: departments. What factors might contribute to this? What issues would you investigate? Give examples…

A: If the voluntary turnover rate in one department of our organization is significantly higher than in…

Q: This is for my supply chain anjd logistics class. COuld you please draw the decision tree out and…

A: Overview Based on its analysis, Sony needs to make a final decision of either the US or Mexico for…

Q: Dell reports that the time between failures for a hard drive is exponentially distributed with a…

Q: Propose a Marketing startegies that the fish products exporting company should use effectively reach…

A: FEEL FREE TO ASK FOR CLARIFICATIONS

Q: Describe the key differences between associations and causes in the work environment

A: In the work environment, an association refers to a relationship or correlation between two or more…

Q: Don't use Ai

A: The statement is asking whether "Standard Deviation is not the best method to calculate how much…

Q: The Donald Fertilizer Company produces industrial chemical fertilizers. The projected manufacturing…

A: Explanation for a: The quarterly production rate can be calculated by dividing the annual demand…

Q: Scenario: You are an international trade consultant ranking the overall quality of various…

A: Key Economic and Political Data PointsMarket Size and Growth PotentialInsights: This data indicates…

Q: In this problem, your company is a distributor of products. You serve as an inventory manager for…

A: Step 4: Compute Total Logistics Costs for Full Truckloads (q = 700 units)1. Storage cost per unit…

Q: You are part of the senior leadership team of a national retail firm. Your company has decided to…

A: 1. Approach to the DecisionA. Initial AssessmentObjective: Understand why the relocation is…

Q: What from today's topics might apply to your Self-Reflection Paper? Here's today's topic: Dyadic…

A: Feel free to ask for clarification if you have any questions or if you need additional answers.Feel…

Q: What is the role of project co-ordinator and engineer on energy generation projects ,and what is the…

A: The Project Coordinator in an energy generation project plays a crucial role in ensuring the smooth…

Q: Don't use Ai

A: ANSWER : 1 Maslow's Hierarchy of NeedsMaria is correct in observing that the children's behaviors…

Q: Describe how the human resource function influences a company's balanced scorecard.

A: The balanced scorecard is a strategic planning and management system used extensively in business…

Concept explainers

Forecasting

Forecasting is a methodology that uses historical data as inputs to make well-informed predictions about the course of future trends. Forecasting is the method of making forecasts based on historical and current data, most commonly by trend analysis. In the business world, forecasting is a basic statistical task. Forecasting is used by businesses to decide how to allocate their budgets or prepare for expected expenditures in the future. Forecasts help managers formulate and execute production plans by providing forecasts. The primary goal of forecasting is to make accurate predictions.

Question

What is the appropriate type of forecasting method to use in the following scenario? Explain why you chose this method.

Holiday Inn, Inc. is attempting to predict the demand next year for motel rooms, based on a history of demand observations.

Expert Solution

This question has been solved!

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

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

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

Under what conditions might a firm use multiple forecasting methods?
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.
The owner of a restaurant in Bloomington, Indiana, has recorded sales data for the past 19 years. He has also recorded data on potentially relevant variables. The data are listed in the file P13_17.xlsx. a. Estimate a simple regression equation involving annual sales (the dependent variable) and the size of the population residing within 10 miles of the restaurant (the explanatory variable). Interpret R-square for this regression. b. Add another explanatory variableannual advertising expendituresto the regression equation in part a. Estimate and interpret this expanded equation. How does the R-square value for this multiple regression equation compare to that of the simple regression equation estimated in part a? Explain any difference between the two R-square values. How can you use the adjusted R-squares for a comparison of the two equations? c. Add one more explanatory variable to the multiple regression equation estimated in part b. In particular, estimate and interpret the coefficients of a multiple regression equation that includes the previous years advertising expenditure. How does the inclusion of this third explanatory variable affect the R-square, compared to the corresponding values for the equation of part b? Explain any changes in this value. What does the adjusted R-square for the new equation tell you?
The file P13_29.xlsx contains monthly time series data for total U.S. retail sales of building materials (which includes retail sales of building materials, hardware and garden supply stores, and mobile home dealers). a. Is seasonality present in these data? If so, characterize the seasonality pattern. b. Use Winters method to forecast this series with smoothing constants = = 0.1 and = 0.3. Does the forecast series seem to track the seasonal pattern well? What are your forecasts for the next 12 months?
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 file P13_02.xlsx contains five years of monthly data on sales (number of units sold) for a particular company. The company suspects that except for random noise, its sales are growing by a constant percentage each month and will continue to do so for at least the near future. a. Explain briefly whether the plot of the series visually supports the companys suspicion. b. By what percentage are sales increasing each month? c. What is the MAPE for the forecast model in part b? In words, what does it measure? Considering its magnitude, does the model seem to be doing a good job? d. In words, how does the model make forecasts for future months? Specifically, given the forecast value for the last month in the data set, what simple arithmetic could you use to obtain forecasts for the next few months?
The file P13_26.xlsx contains the monthly number of airline tickets sold by the CareFree Travel Agency. a. Create a time series chart of the data. Based on what you see, which of the exponential smoothing models do you think will provide the best forecasting model? Why? b. Use simple exponential smoothing to forecast these data, using a smoothing constant of 0.1. c. Repeat part b, but search for the smoothing constant that makes RMSE as small as possible. Does it make much of an improvement over the model in part b?
The file P13_28.xlsx contains monthly retail sales of U.S. liquor stores. a. Is seasonality present in these data? If so, characterize the seasonality pattern. b. Use Winters method to forecast this series with smoothing constants = = 0.1 and = 0.3. Does the forecast series seem to track the seasonal pattern well? What are your forecasts for the next 12 months?
Do the sales prices of houses in a given community vary systematically with their sizes (as measured in square feet)? Answer this question by estimating a simple regression equation where the sales price of the house is the dependent variable, and the size of the house is the explanatory variable. Use the sample data given in P13_06.xlsx. Interpret your estimated equation, the associated R-square value, and the associated standard error of estimate.
A small computer chip manufacturer wants to forecast monthly ozperating costs as a function of the number of units produced during a month. The company has collected the 16 months of data in the file P13_34.xlsx. a. Determine an equation that can be used to predict monthly production costs from units produced. Are there any outliers? b. How could the regression line obtained in part a be used to determine whether the company was efficient or inefficient during any particular month?
Explain the trade off between responsiveness and consistency in a time series forecasting system?