4.23, 4.27, 4.33, and 4.35.
4.23 Sales of vegetable dehydrators at Bud Banis’s discount department store in St. Louis over the past year are shown below. Management prepared a forecast using a combination of exponential smoothing and its collective judgment for the 4 months (March, April, May, and June of 2010) (Render 142)
Compute MAD and MAPE for management’s technique.
Do management’s results outperform (i.e., have smaller MAD and MAPE than) a naive forecast?
Which forecast do you recommend, based on lower forecast error?
4.27 Mark Cotteleer owns a company that manufactures sailboats. Actual demand for Mark’s sailboats during each season in 2006 through 2009 was as follows: (Render 142-143)
Mark has forecasted that annual demand for his sailboats in 2011 will equal 5,600 sailboats. Based on this data and the multiplicative seasonal model, what will the demand level be for Mark’s sailboats in the spring of 2011? (Render 143)
4.33 The number of transistors (in millions) made at a plant in Japan during the past 5 years follows: (Render 143)
Forecast the number of transistors to be made next year, using linear regression.
Compute the mean squared error (MSE) when using linear regression.
Compute the mean absolute percent error (MAPE). (Render 143)
4.35 John Howard, a Mobile, Alabama, real estate developer, has devised a regression model to help determine residential housing prices in South Alabama. The model was developed using recent sales in a particular neighborhood. The price (Y) of the house is based on the size (square footage = X) of the house. The model is:
Y = 13,473 + 37.65X
The coefficient of correlation for the model is 0.63.
Use the model to predict the selling price of a house that is 1,860 square feet.
An 1,860-square-foot house recently sold for $95,000. Explain why this is not what the model predicted.
If you were going to use multiple regression to develop such a model, what other quantitative variables might you include?
What is the value of the coefficient of determination in this problem? (Render 143-144)
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more