Q: An independent variable in a model is also called: a. explained variable. b. unexplained variable.…
A: Option (c).
Q: The use of quarterly data to develop the forecasting model Yt = a +bYt-1 is an example of which…
A: The forecasting refers to the prediction technique for a certain situation taking into consideration…
Q: Comprehensively state the criteria and process of selecting appropriate models for time series…
A: Time series forecasting is used when making scientific forecasts based on historical time stamped…
Q: What is a qualitative forecasting model, and when is its use appropriate?
A: Forecasting refers to making predictions based on past and present data and analyzing the trends.…
Q: Jan '20 0.68 Feb '20 0.76 Mar '20 1.6 Apr '20 1.47 May '20 0.98 Jun '20 1.18 Jul '20 3.59 Aug '20…
A: 1) Simple Moving Average (SMA): A simple moving average is a statistical tool that simply calculates…
Q: Formulate the demand equations and estimate Qd for P=33 by using the following data: Price…
A: The formula for demand equation: y-y1=m(x-x1) y is the dependent variable which is price x is the…
Q: Short-range forecasts tend to ________ longer-range forecasts. A. deal with more comprehensive…
A: Forecasts for the short term are made using data that has been seen, extrapolated, and how systems…
Q: QUESTION 9 A seasonal index is calculated by dividing the _________. current season by the…
A: Note: We will answer one question as the exact one was not specified. Please resubmit a new question…
Q: temperature. (ii) Predict the electricity consumption of the office when the maximum temperature is…
A: Regression is a measurable technique utilized in money, contributing, and different disciplines that…
Q: True or False ? Justify your answers. A quadratic trend model y = B1 + B2TIME + B3TIME? + &t is…
A: 1 A quadratic trend model y = B 1 + B ₂TIME + B 3 Time 3 + et is considered a linear regression.…
Q: Two different forecasting techniques (F1 and F2) were used to forecast demand for cases of bottled…
A:
Q: You own a restaurant near the beach. Business has been growing each year, but obviously spikes…
A: The regression equation gives a mathematical form to the association or link between two or more…
Q: . IfQ=K!®L² the MP; is a. constant b. diminishing c. increasing d. not enough information to…
A: The production function would result in the maximum output that can be produced given the technology…
Q: What factor(s) determine the magnitude of the LM slope (steep or flat)?
A: The factor that determine the magnitude of the LM curve, i.e. whether it will be steep or flat…
Q: Name two coincident indicators used in forecasting
A: Coincident indicators help in understanding the current economic position prevailing in a particular…
Q: Part C 3. The manager of a certain gasoline station wants to forecast the demand for the unleaded…
A: Exponential smoothed forecast for demand from April to November when α = 0.25 Exponential smoothed…
Q: Bell Greenhouses has estimated its monthly demand for potting soil to be the following: Assume this…
A: Monthly demand for potting soil is given by: N = 400 + 4X where N = number of potting soli bags…
Q: Critically/quantitatively evaluate the following statement (true, false or uncertain): • In a linear…
A: Ordinary least square method is used to regress dependent variable on independent variables. Here…
Q: A local moving company has collected data on the number of moves they have been asked to perform…
A: The equation for the trend line of yearly sales is given: Ft = 16 + 60t
Q: The forecasting staff for the Prizer Corporation has developed a model to predict sales of its…
A: A sales forecasting model is employed to estimate the expected influx of revenue on the basis of…
Q: ed Cordaro is an analytics consultant who has been brought into a large distribution company to…
A: Human resources are a set of people who make up the workforce of an organization, business,…
Q: Mr. John operates a medium size business that sells tires. He buys most of his tires from a company…
A: What is EOQ? Economic order quantity is the ideal quantity any company should order to minimize…
Q: Two coincident indicators used in forecasting
A: A coincident pointer is a metric that shows the present status of financial movement inside a…
Q: A police station had to deploy a police officer for an emergency multiple times in the last four…
A: Forecast for Friday using naive approach = Actual demand of previous period(Thursday) = 12.
Q: Question 4 Consider the following data: Month Bicycles Sold 21.6 2. 22.9 25.5 21.9 23.9 6. 27.5 7…
A: We are going to calculate Mean Absolute Percentage Error using its formula and definition.
Q: EXPLAIN 2 ways of how should the decision maker incorporate forecast error?
A: A forecast error is simply the difference between the actual and forecasted value of any time series…
Q: Silicon Co. has forecasted the Canadian dollar for the most recent period to be $0.73. The realized…
A: Absolute forecast error means the difference between forecasted and actual value of the currency ,…
Q: With respect to a given product, describe the connection that exists between…
A: A product i Phone is said to be in equilibrium if its quantity demanded is equal to quantity…
Q: A firm experienced the demand shown in the following table. Fill in the table by preparing forecasts…
A: Compute 5-year moving average demand forecast using Fy = (Dy-1 + Dy-2 + Dy-3 + Dy-4 + Dy-5) / 5…
Q: If OLS is used in the presence of autocorrelation, which of the following will be likely…
A: Consequences in term of auto-correlation and heteroscedasticity. Hence, the estimates made by…
Q: Historical demand for the product is: Month Demand January 12 February 11 March 15 April 12 May 16…
A: Month Demand Weights Weighted average April 12 0.1 12*0.1 =1.2 May 16 0.3 16*0.3=4.8 June…
Q: Consider an ISLM model given by these equations: Y = C + I + G C = 10 + Ya T = 10 G = 15 I = 5+÷Y –…
A: (a) At equilibrium Y = C + I + G => Y = 10 + (1/2)Yd + 5 + (1/4)y -100i + 15 Note: Yd = Y - T…
Q: Assume the following AR(1) Y, = 0.036 + 0.69Y,-1 + E Suppose you have data for t-1, let's say Y,I =…
A: * SOLUTION :- *(8)
Q: Recessions occur Group of answer choices irregularly. regularly, about every 10 years. regularly,…
A: Answer - Need to find- Recessions occur Evaluating the options- 1.irregularly. 2.regularly,…
Q: On the graph beside, we see the residuals from applying the average forecasting method on 200 daily…
A: Answer - Autocorrelation:- Autocorrelation exsist when there is similarity betwenn the current…
Q: What action should be taken when unacceptable error is found in tracking a forecast?
A: Forecasting is the method of predicting future trends in the economy by analyzing the present and…
Q: True or False? WLS is preferred to OLS when an important variable has been omitted from the model.
A: The given statement is false.
Q: The forecast for week 13 is (Enter your response rounded to the nearest whole number)
A: After finding the regression equation we use the value 13 in the independent variable to forecast…
Q: Which of the following is true about ARIMA models A. ARIMA models cannot be used for seasonal data…
A: ARIMA stands for Auto-Regressive Integrated Moving Average. The lags of the stationary series in…
Q: Qualitative methods of forecasting include:a) sales force composite. b) jury of executive opinion.c)…
A: The methods of sales forecasting include qualitative and quantitative methods. Some of the…
Q: How Forecasts is compared with predicted values? why these both terms are different?
A: A forecast is an estimation that is based on the previous data. A prediction is estimating the…
Q: Consumer expenditure plans is an example of a forecasting method. Which of the general categories…
A: When the government and other national or state officials study and analyze the economy on the basis…
Q: The following is the data of recent refrigerator sales at a local Home Depot store. Month 1 2 3…
A: Weighted moving averages assign a heavier weighting to more current data points since they are more…
Q: Forecasting accuracy cannot be considered as a performance metric (TRUE/ FALSE).
A: Performance metrics is a measurement of behaviour of the organisation it's related activities and…
Q: Water bills are perfectly correlated to precipitation levels Group of answer choices A. True…
A: In an economy, the price of any commodity is determined by various factors like demand, supply, and…
Q: ITEMS 18 to 20 ARE BASED ON THE FOLLOWING INFORMATION: The following information pertains to Emy…
A: Given: The annual demand for Emy manufacturing corporation is = 33,750 units The annual cost to hold…
Identify and briefly describe the two general
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- Comprehensively state the criteria and process of selecting appropriate models for time series forecasting.A researcher has a sample of 6 annual observations {94, 104, 102, 99, 111 and 107} for the CPI in country Z for the period 2015 to 2020, and wants to forecast CPI for the years 2021, 2022 and 2023. The researcher uses 3 different forecasting models: A, B and C. Model A is an AR(1) model with no drift and with an estimated autoregressive coefficient = 0.7. Model B is a MA(1) model with no constant and with an estimated MA coefficient = -0.4 (note the minus !). Model C is a random walk model with no drift. The error terms over the 2015-2020 period were estimated to have the values: {3, -1, 2, 4, -3, 1}. a. Compute the 2021, 2022 and 2023 forecasted values for the consumer price index based on the three models. Show the formulas and the details of your calculations, and explain all the related symbols. b. Suppose that the actual values of the CPI over the 2021, 2022 and 2023 were {108, 114, 105}. Calculate the Root mean square error of the three model forecasts over the 2021-2023…Name two coincident indicators used in forecasting
- The use of quarterly data to develop the forecasting model Yt = a +bYt-1 is an example of which forecasting technique?The type of economic indicator that can best be used for business forecasting is the:Historical demand for Peeps is as displayed in the table. Month Demand January 11 February 18 March 31 April 39 May 44 June 53 July 67 August 82 September 96 Develop forecasts from June through October using these techniques: Holt's method with alpha=0.2 and beta=0.1. For Holt's model, the level and trend for May are assumed to be 44 and 12. Judge which forecast method is the best based on MAD.
- Choose one of the following forecasting methods discussed in this chapter: last-value, averaging, moving-average, or exponential smoothing. Identify the conditions when the method is most appropriate to use and give an example of an application of this method.Suppose that you work for a U.S. senator who is contemplating writing a bill that would put a national sales tax in place. Because the tax would be levied on the sales revenue of retail stores, the senator has asked you to prepare a forecast of retail store sales for year 8, based on data from year 1 through year 7. The data are: (c1p2) Year Retail Store Sales 1 $1,225 2 1,285 3 1,359 4 1,392 5 1,443 6 1,474 7 1,467 54 Chapter One a. Use the first naive forecasting model presented in this chapter to prepare a forecast of retail store sales for each year from 2 through 8. b. Prepare a time-series graph of the actual and forecast values of retail store sales for the entire period. (You will not have a forecast for year 1 or an actual value for year 8.) c. Calculate the root-mean-squared error for your forecast series using the values for year 2 through year 7. 3. Use the second naive forecasting model presented in this chapter to answer parts (a) through (c) of Exercise 2. Use P 0.2 in…Eastman Publishing Company is considering publishing an electronic textbook about spreadsheet applications for business. The fixed cost of manuscript preparation, textbook design, and web site construction is estimated to be $172,000. Variable processing costs are estimated to be $5 per book. The publisher plans to sell single-user access to the book for $42. Through a series of web-based experiments, Eastman has created a predictive model that estimates demand as a function of price. The predictive model is demand = 4,000 − 6p, where p is the price of the e-book. (a) Construct an appropriate spreadsheet model for calculating the profit/loss at a given single-user access price taking into account the above demand function. What is the profit estimated by your model for the given costs and single user access price (in dollars). $ (b) Use Goal Seek to calculate the price (in dollars) that results in breakeven. (Round your answer to the nearest cent.) $ (c) Use a data table that varies…
- How Forecasts is compared with predicted values? why these both terms are different?Which of the following is true about ARIMA models A. ARIMA models cannot be used for seasonal data B. ARIMA models are always better than other forecasting models C. ARIMA models include three parts, AR, MA, and I D. None of the aboveDecreasing the number of periods in a moving average will produce: A.decreased sensitivity to real changes in the data. B. forecast accuracy. C.greater smoothing of the forecasts D.forecast stability. E.None of these answers are correct.