Grace owns and operates a chain of 12 vegetable protein "hamburger" restaurants in northern Luzon. Sales figures and advertising expenses for the stores are provided in the table below. Sales are given in millions of dollars; advertising expenses are in tens of thousands of dollars. Calculate a regression line for the data. What is your forecast of sales for a store with advertising spending of $240,000? $300,000?Vince Coffee chain sells temperature-controlled smart mugs at $150 each. The monthly sales of mugs for the last twelve months were:Given:MonthSalesJanuary825February756March808April950May678June875July695August589September690October890November1030December1525a. Compute a 3-month moving average demand forecast for each month from June through December.b. Compute a 5-month moving average demand forecast for each month from June through December.c. Calculate the MSE covering June through December for both methods.

Question 1: Veggie Burger RestaurantsThis question uses regression analysis to find a relationship…

Answered: Grace owns and operates a chain of 12…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section: Chapter Questions

Problem 40P: The Baker Company wants to develop a budget to predict how overhead costs vary with activity levels....

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Grace owns and operates a chain of 12 vegetable protein "hamburger" restaurants in northern Luzon. Sales figures and advertising expenses for the stores are provided in the table below. Sales are given in millions of dollars; advertising expenses are in tens of thousands of dollars. Calculate a regression line for the data. What is your forecast of sales for a store with advertising spending of $240,000? $300,000?
Vince Coffee chain sells temperature-controlled smart mugs at $150 each. The monthly sales of mugs for the last twelve months were:

Given:

Month	Sales
January	825
February	756
March	808
April	950
May	678
June	875
July	695
August	589
September	690
October	890
November	1030
December	1525

a. Compute a 3-month moving average demand forecast for each month from June through December.

b. Compute a 5-month moving average demand forecast for each month from June through December.

c. Calculate the MSE covering June through December for both methods.

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