Discuss the strategic importance of forecasting
Q: Develop a forecasting plan
A: The following steps are using for developing a forecasting plan. We have,We are collecting data for…
Q: Which are the QUALITATIVE TECHNIQUES IN FORECASTING?
A: Forecasting is the process of identifying the demand accurately for future production planning and…
Q: Discuss the role of forecasting for the following functions of the firm:a. Marketingb. Accountingc.…
A: Before getting into the question let’s first understand the meaning of Forecasting. Forecasting: It…
Q: Describe the characteristics and differences between qualitative, quantitative, extrinsic,…
A: Forecasting techniques are used to predict the present and future events which helps in analysing…
Q: Identify the three forecasting time horizons. State anapproximate duration for each.
A: With the help of forecasting we can predict what will be happing in the future. It can be done by…
Q: Describe four qualitative forecasting techniques.
A: When businesses do not have a history of purchases, they tend to use qualitative techniques. Instead…
Q: Explain FORECASTS BASED ON TIME-SERIES DATA?
A: Forecast of a time series data can be determined using various statistical techniques by generating…
Q: Describe the methods utilised to create the forecasting approach?
A: Forecasting is a continuous process that businesses engage in on a short and long-term basis. It…
Q: Describe the four most popular qualitative forecasting approaches.
A: Forecasting is the practise of reliably identifying demand for the purposes of potential output…
Q: Describe the four most frequently used qualitative forecasting techniques?
A: When a company does not have a history of purchasing, it is most likely to employ qualitative…
Q: Explain when to use a time series forecasting techniques
A: The statistical techniques are applied to past records and hence to the projected variables.…
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: 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: Identify the major differences between qualitative and quantitative forecasting.
A: Forecasting can be defined as the technique which predicts the future information based on…
Q: Explain the similarities and differences between quantitative forecasting and qualitative…
A: Forecasting refers to the process of making predictions for the future using past and present data.…
Q: Identify and briefly explain the two primary approaches to forecasting.
A: Forecasting is a method that uses historical data as inputs to generate predictions that can be used…
Q: What is a time-series forecasting model?
A: Forecasting is an important instrument to predict the future. Every organization needsforecasting to…
Q: Explain the steps involved in the forecasting process
A: In these modern days, predicting our market share in the global market is little tricky and to how…
Q: Describe the six steps in a typical forecasting process.
A: Six steps in a typical forecasting process are: Determine the purpose of the forecast…
Q: Describe four (4) features common to all forecasts techniques.
A: Forecast is study of previous data and trends to predict values which helps in decision making.…
Q: An example of the Quantitative Method of forecasting is
A: Businesses and salespeople can use quantitative forecasting, an objective, data-based process, to…
Q: Discuss the methods that are used to develop the forecasting methodology?
A: Forecasting is a continuous process that the business engages in both in the short and long term. It…
Q: Other factors to consider in selecting a forecasting technique
A: Forecasting is used to predict future changes or demand patterns. It involves different approaches…
Q: guide with reasons for the company to use appropriate forecasting models.
A: Organizations use the forecasting technique to help them develop corporate plans and strategies. In…
Q: Describe List features common to all forecasts?
A: It is the process of estimating future demand using the present and past data. The demand is…
Q: Explain the six steps involved in a typical forecasting procedure.
A: Forecasting is a technique that enables the creation of informed forecasts by utilising previous…
Q: Describe the uses of qualitative, time-series, and causal forecasts.
A: Qualitative Forecasts are used when data as a historical series is not available, or is not relevant…
Q: Discuss the basic assumptions made when using time series forecasting techniques as apposed to…
A: Time series forecasting fundamental assumptions:
Q: Disadvantages of forecasting
A: Forecasting is a technique used in business where the decisions regarding future trends are taken…
Q: Describe the process of Forecasting in the Service Sector?
A: Forecasting is the way toward making forecasts of things to come dependent on over a wide span of…
Q: Outline the steps in the forecasting process.
A: Forecasting is the process of identifying the demand accurately for future production planning and…
Q: Describe the methods that are used to develop the forecasting methodology?
A: Forecasting is a continuous process that the organisation engages in on both a short and long term…
Q: Define QUANTITATIVE FORECASTING MODELS
A: Forecasting is the process of identifying the demand accurately for future production planning and…
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- Under what conditions might a firm use multiple forecasting methods?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 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 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?What forecasting techniques are used in the management of technology and innovation?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?