Practical Management Science
5th Edition
ISBN: 9781305250901
Author: Wayne L. Winston, S. Christian Albright
Publisher: Cengage Learning
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Chapter 14, Problem 41P
Summary Introduction
To determine: Why the annual income of Company K differs from other 25 firms.
Introduction:
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Answer in Excel:
Consider the data below for the sales of widgets: 1. Using seasonal percentages or seasonal indexes, forecast the sales for each season in year 4, if the annual widgets sales is predicted to be 1500. 2. Develop a regression equation that captures both the trend and seasonality in this data. Use this equation to forecast the sales for each season in year 4.
Season
Year 1
Year 2
Year 3
Fall
505
240
210
Winter
555
460
365
Spring
400
310
204
Summer
560
450
394
The following table shows a tool and die company's quarterly sales for the current year. What sales would you predict for the first
quarter of next year? Quarter relatives are SR= .94, SR,- 97, SR= 97, and SR, 112. For the trend forecast (T), add the difference
between quarter 3 and quarter 4's deseasonalized sales data to the deseasonalized quarter 4 sales. (Round your answer to 1 decimal
place.)
Quarter
Sales
84.6 83.0 84.7 108.0
The Victory Plus Mutual Fund of growth stocks has had the following average monthly price for the past 10 months:
Month
Fund Price
1
62.7
2
63.9
3
68.0
4
66.4
5
67.2
6
65.8
7
68.2
8
69.3
9
67.2
10
70.1
Compute the forecast for Month 11 using the exponentially smoothed forecast with α=.40,
Compute the forecast for Month 11 using the adjusted exponential smoothing forecast with α=.40and β=.30, and
Compute the forecast for Month 11 using the linear trend line forecast. (Compute a and b by constructing columns xy and x^2)
Compare the accuracy of the three forecasts, using cumulative error and MAD, and indicate which forecast appears to be most accurate.
Chapter 14 Solutions
Practical Management Science
Ch. 14.3 - Prob. 1PCh. 14.3 - Prob. 2PCh. 14.3 - Prob. 3PCh. 14.3 - Prob. 4PCh. 14.3 - Prob. 5PCh. 14.3 - Prob. 6PCh. 14.3 - Prob. 7PCh. 14.3 - Prob. 8PCh. 14.3 - Prob. 9PCh. 14.3 - Prob. 10P
Ch. 14.4 - Prob. 12PCh. 14.4 - Prob. 13PCh. 14.4 - Prob. 14PCh. 14.4 - Prob. 15PCh. 14.4 - Prob. 16PCh. 14.4 - Prob. 17PCh. 14.6 - Prob. 19PCh. 14.6 - Prob. 20PCh. 14.6 - The file P14_21.xlsx contains the weekly sales of...Ch. 14.6 - Prob. 22PCh. 14.7 - Prob. 23PCh. 14.7 - Prob. 24PCh. 14.7 - Prob. 25PCh. 14.7 - Prob. 26PCh. 14.7 - Prob. 27PCh. 14.7 - Prob. 28PCh. 14.7 - Prob. 29PCh. 14.7 - Prob. 30PCh. 14 - Prob. 31PCh. 14 - Prob. 32PCh. 14 - Prob. 33PCh. 14 - Prob. 34PCh. 14 - Prob. 35PCh. 14 - Prob. 36PCh. 14 - Prob. 37PCh. 14 - Prob. 39PCh. 14 - Prob. 40PCh. 14 - Prob. 41PCh. 14 - Prob. 42PCh. 14 - Prob. 43PCh. 14 - Prob. 44PCh. 14 - Prob. 45PCh. 14 - Prob. 46PCh. 14 - Prob. 49P
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