Answered: Discuss the role of forecasting for the…

Discuss the role of forecasting for the following functions of the firm:a. Marketingb. Accountingc. Financed. Production

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter6: Target Markets: Segmentation And Evaluation

Section: Chapter Questions

Problem 17DRQ: Under what conditions might a firm use multiple forecasting methods?

See similar textbooks

Related questions

Q: Canton Supplies, Inc., is a service firm that employs approximately 100 people. Because of the…

A: Find the given details below: Given details: Month ($ 1000) 1 186 2 219 3 216 4 270…

Q: Series forecasting for Business| The F-test used in testing the significance of a regression model…

A: The correct answer is

Q: Consider the following time series data: Week 1 2 3 4 5 6 Value 18 13 16 11 17…

A: The concept used here is forecasting with Moving averages and forecast evaluation using MAE, MSE and…

Q: a. Construct a time series plot. What type of pattern exists in the data? b. Compare a two-week…

A: Forecasting is predicting in advance the values through various methods like moving averages,…

Q: (a) Compute four-week and five-week moving averages for the time series. 4-Week 5-Week Moving…

A: (a) (b)

Q: Handy, Inc., produces a solar-powered electronic calculator that has experiencedthe following…

A: Formula:

Q: Explain the trade-off between responsiveness and stability in a forecasting system that uses…

A: Time Series Data: statistic knowledge is outlined as during an amount of your time,…

Q: The following table shows the past two years of quarterly sales information. Assume that there are…

Q: The forecast for week 6 is ___ service calls (round to two decimals and show your work)

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

Q: 2. National Scan, Inc., sells radio frequency inventory tags. Monthly sales for a seven- month…

A: Here, from the question, I have got the tabulated data, for this data, I have applied various…

Q: You discovered that the forecasting error falls beyond the acceptable ranges in the past three…

A: Find the given details below: Given details: Period Actual Forecast (A-F) Error (A) (F)…

Q: State and describe the steps involved in developing a forecasting system

A: To be determined: the steps involved in developing a forecasting system

Q: The data below represents the quarterly changes in demand for a product over the next 3 months.…

A: Given data is

Q: Briefly describe the steps that are used to develop a forecasting system.

A: Forecasting is the primary function for predicting the future using the available data to make the…

Q: Develop a 3-weck weighted average forecast for Week 4 through 9 with weights WI - W2 = W3 = 0.2 0.3…

A: A moving average based on weighted average puts weight on the data gathered recently, by multiplying…

Q: Monthly sales in a company for a seven-period (Jan-July) were as follows: 19, 18, 16, 14, 17, 19,…

A: A simple moving average calculates the average of a selected range of the values, usually the closed…

Q: Consider the following actual (At) and forecast(Ft) demand levels for a commercial multiline…

Q: Explain the trade-off between responsiveness and stability in a forecasting system that uses…

A: Forecasting is the process of making assumptions of the future on the basis of past and present data…

Q: Consider the data below which includes sales data and the forecasts that would have been made using…

A: Given data is

Q: What method would you choose of forecasting technique, which requires subjective inputs obtained…

A: Forecasting is technique which uses past data in order to predict future trends. It is mainly used…

Q: Accuracy of forecasts. The manager of a large manufacturer of industrial pumps must choose…

A: Given data, Assume that each forecast has an average error of zero. Forecast Month…

Q: Two different forecasting models were used to forecastsales of a popular soda on a college campus.…

A: Solution - Introduction - [1] Forecasting Model - Forecasting models are one of the numerous methods…

Q: What is the definition of a forecast error?a. The average difference between the forecast and the…

A: Forecasting is a tool that uses historical data as inputs that are predictive in deciding the path…

Q: The monthly sales for Yazici Batteries, Inc., were as follows: Month Jan Feb Mar Apr Мay Jun Jul Aug…

A: Given data- Month Sales Jan 20 Feb 21 Mar 16 Apr 15 May 15 Jun 16 Jul 17 Aug 19…

Q: National Standard, Inc. sells radio frequency identification (RFID) tags. Monthly demand for a…

A: Note: - Since we only answer up to 3 sub-parts, we’ll answer the first3. Please resubmit the…

Q: A pizza chain wants to forecast the demand rate for each store for each hour in the day.What type of…

A: Forecasting is the tool or technique which uses the historical data as the inputs to make the…

Q: Corporate triple-A bond interest rates for 12 consecutive months follow. Month 1 2 3 4 5 6 7 8 9 10…

A: a)

Q: c. Using simple exponential smoothing, what would your forecast be for this month if the…

Q: Weekly demand for an item averaged 100 units over the past year. Actual demand forthe next eight…

Q: The manager of a large manufacturer of industrial pumps must choose between two alternative…

A: Both techniques have been used to prepare forecasts for a six month period as follows:

Q: Explain 4 methods of time series in demand forecasting

A: Demand forecasting is an estimate made by the managers in order to know the customer demand…

Q: All the following are techniques used in quantitative forecasting except. A. Regression analysis B.…

A: Forecasting refers to the approach of making predictions on the basis of present and past…

Q: All forecasts are subject to error. Do you think topmanagers would be concerned about the effectson…

A: Forecasting is described as a tool that will allow the businesses in the budgeting process and also…

Q: Briefly mention the five characteristics of data patterns in time series method of forecasting.

A: Time series forecasting happens when making a scientific projection based on documented or…

Q: Suppose actual quarterly sales (in thousands) for Year 5 are 193, 163, 207, and 105 respectively.…

Q: Sales Month (000 units) Feb. 19 Mar. 18 Apг. May 15 20 Jun. 18 Jul. 22 Aug. 20 a. Plot the monthly…

A: The known data is given below:

Q: Use the data below to solve for the following: Naïve method Unweighted 3 month moving average…

A: Note: - Since we can answer up to three subparts only, we will answer the first three subparts(first…

Q: The Victory Plus Mutual Fund of growth stocks has had the following average monthly price forthe…

A: Month Price 1 62.7 2 63.9 3 68 4 66.4 5 67.2 6 65.8 7 68.2 8 69.3 9 67.2 10…

Q: A properly prepared forecast for the demand of a company’s product should fulfill certain…

A: Demand forecast is a technique through which historic data is analysed to predict future market…

Q: a) Use a 2-month moving average on all the data and plot the averages and the prices. b) Use a…

A: The mean absolute deviation(MAD) shows the errors in the forecasted values from the actual values.…

Q: Describe the purpose of forecasting for strategic business planning, sales and operations planning,…

A: Forecasting is the process that is used by every business, organization whether they deal in the…

Q: None of the options are correct.

A: What is Stationarity? A time collection has stationarity if a shift in time doesn’t purpose an…

Q: Distinguish between Historical Analogy and the Delphi Method forecasting and discuss a business…

A: Historical analogy - Forecast in light of examining the item life cycle and the requests of…

Q: The following data are for calculator sales in units at an electronicsstore over the past 9…

A: In order to find Trend projection, Trend equation using regression is as follows: Where, and…

Q: 1. It has been said that forecasting using exponential smoothing is like driving a car by looking in…

A: As specified, I have solved the second question for you. Kindly find it's answer ahead and post the…

Q: Herman Hahn is attempting to set up an integrated forecasting and inventory controlsystem for his…

A: Time-series forecasting and seasonality factors in it:

Q: A company which installs swimming pools has recently merged with another regional installer. It is…

A: Forecasting in advance helps to estimate the sales that could be generated in the future period.…

Q: irlines company approaches you to suggest ossible methods for an effective Forecast and 's…

A: Forecasting refers to making predictions regarding the future variables. It is widely used in…

Concept explainers

Forecasting in Business

Forecasting is the process of predicting the future based on the past and the present data and circumstances. In other words, forecasting is the act of making a detailed analysis of future events based on the decisions made in the past as well as the present. Forecasting plays a very important role in operational management as it helps in planning and decision-making. It is not only important for the success of a business but also contributes to individual growth and success. Many business organizations or companies have failed due to the shortcomings of their forecasting.

Question

Discuss the role of forecasting for the following functions of the firm:
a. Marketing
b. Accounting
c. Finance
d. Production

Leveraging special tenchniques in analyzing historical data to predict future trends. Forecasting covers the methods and types of forecasting and their application to case studies.

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step 3

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 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

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_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_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.
Under what conditions might a firm use multiple forecasting methods?
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?
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_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_27.xlsx contains yearly data on the proportion of Americans under the age of 18 living below the poverty level. 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. Create a chart of the series with the forecasts superimposed from this optimal smoothing constant. Does it make much of an improvement over the model in part b? d. Write a short report to summarize your results. Considering the chart in part c, would you say the forecasts are good?
The file P13_19.xlsx contains the weekly sales of a particular brand of paper towels at a supermarket for a one-year period. a. Using a span of 3, forecast the sales of this product for the next 10 weeks with the moving averages method. How well does this method with span 3 forecast the known observations in this series? b. Repeat part a with a span of 10. c. Which of these two spans appears to be more appropriate? Justify your choice.
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_25.xlsx contains the quarterly numbers of applications for home mortgage loans at a branch office of Northern Central Bank. 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? Is it guaranteed to produce better forecasts for the future?