BUSI 411 Homework 3 Forecasting Assignment solutions complete answers

BUSI 411 Homework 3 Forecasting Assignment solutions complete answers

 

Problem 3-2 (Algo)

National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven-month period were as follows:
 

Month
Sales
(000)Units
Feb.
15
Mar.
19
Apr.
12
May.
21
Jun.
23
Jul.
24
Aug.
27
 
 

Click here for the Excel Data File

 

a. Forecast September sales volume using each of the following:

 

(1) The naive approach.
 

 

(2) A five-month moving average. (Round your answer to 2 decimal places.)
 

(3) A weighted average using 0.80 for August, 0.05 for July, and 0.15 for June. (Round your answer to 2 decimal places.)
 

(4) Exponential smoothing with a smoothing constant equal to 0.25, assuming a March forecast of 18(000). (Round your intermediate forecast values and final answer to 2 decimal places.)
 
 

(5) A linear trend equation. (Round your intermediate calculations and final answer to 2 decimal places.)

 

Problem 3-7 (Algo)

Freight car loadings over an 18-week period at a busy port are as follows:
 

Week
Number
Week
Number
Week
Number
1
380
7
450
13
655
2
385
8
500
14
665
3
390
9
550
15
715
4
385
10
545
16
720
5
390
11
595
17
725
6
400
12
645
18
730
 
 

Click here for the Excel Data File

 

a. Determine a linear trend line for expected freight car loadings. (Round your intermediate calculations and final answers to 2 decimal places.)
 

 

b. Use the above trend equation to predict expected loadings for Weeks 20 & 21. (Round your final answers to 2 decimal places.)
 


 
c. The manager intends to install new equipment when the volume exceeds 960 loadings per week. Assuming the current trend continues, in which week (at the earliest) should the loading volume reach that level?  (Use the rounded answers, as required, from any previous part of this problem.  Do not round any other intermediate calculations.  Round your final answer to 2 decimal places.)

 

Problem 3-20 (Algo)

An analyst must decide between two different forecasting techniques for weekly sales of roller blades: a linear trend equation and the naive approach. The linear trend equation is Ft = 125 + 2.0t, and it was developed using data from periods 1 through 10. Based on data for periods 11 through 20 as shown in the table, which of these two methods has the greater accuracy if MAD and MSE are used? (Round your intermediate calculations and final answers to 2 decimal places.)
 

t
Units Sold
11
148
12
150
13
149
14
146
15
156
16
148
17
156
18
154
19
159
20
163
 
 

Problem 3-24 (Algo)

Timely Transport provides local delivery service for a number of downtown and suburban businesses. Delivery charges are based on distance and weight involved for each delivery: 23 cents per pound and 18 cents per mile. Also, there is a $28 handling fee per parcel.
 

a. Develop an expression that summarizes delivery charges. (Enter your answers as dollar amounts to 2 decimal places. (x1 = weight, x2 = distance))
 

b. Determine the delivery charge for transporting a 38-pound parcel 18 miles. (Do not round your intermediate calculation. Round your answer to 2 decimal places.)

 

Problem 3-15 (Algo)
The manager of a fashionable restaurant open Wednesday through Saturday says that the restaurant does about 38 percent of its business on Friday night, 22 percent on Saturday night, and 12 percent on Thursday night. What seasonal relatives would describe this situation? (Round your answers to 2 decimal places.)