Answered: q1(a)Imagine that you need to introduce…

q1(a)Imagine that you need to introduce a new gadget such as the Apple Watch. Determine which forecasting method is appropriate for projecting the future demand of such this gadget.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter13: Regression And Forecasting Models

Section13.6: Moving Averages Models

Problem 22P: The file P13_22.xlsx contains total monthly U.S. retail sales data. While holding out the final six...

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Concept explainers

Forecasting

Forecasting is a methodology that uses historical data as inputs to make well-informed predictions about the course of future trends. Forecasting is the method of making forecasts based on historical and current data, most commonly by trend analysis. In the business world, forecasting is a basic statistical task. Forecasting is used by businesses to decide how to allocate their budgets or prepare for expected expenditures in the future. Forecasts help managers formulate and execute production plans by providing forecasts. The primary goal of forecasting is to make accurate predictions.

Question

q1(a)Imagine that you need to introduce a new gadget such as the Apple Watch. Determine which forecasting method is appropriate for projecting the future demand of such this gadget.

b)ARIMA is mostly used to forecast future values using historical time series data, as we all know. Its primary use is in short-term forecasting with at least 38-40 historical data points and a small number of outliers. If we don't have at least 38 data points, we should consider using another strategy.

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.

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