Which of the following are characteristics of qualitative forecasting methods? |- It is a function of past data || – Non-numerical data III – Useful when past data is available IV – Based on a broad range of knowledge, personal judgment, and intuition OI and III O Il and IV O1, II, and III O II, III, and IV
Q: Which of the following statements about forecasts is true? O A. Forecasts are no substitute for…
A: Forecasting is the method of constructing predictions dependent on historic and current data and…
Q: Consider then, the nature and characteristics of forecasting. What do you think the difficulties or…
A: Forecasting is a method where historical data is used an input to make output in the form of data…
Q: orecasting is the primary function for predicting the future using the available data to make the…
A: Forecasting is the primary function for forecasting the future and making decisions based on the…
Q: If a manager asked you whether to use time-seriesforecasting models or regression-based…
A: Forecasting is described as a technique through past data that can be used as inputs for making…
Q: Series forecasting for Business| The F-test used in testing the significance of a regression model…
A: The correct answer is
Q: which of the following is a technique used to determine forecasting accuracy A. Mean Absolute…
A: There is a difference between forecasting and finding the accuracy of the forecast and one might…
Q: Sophisticated forecasting models are not always better than simple o There is no single forecasting…
A: Forecasting is one of the ways in which the companies try to analyse their future demand. The…
Q: which of the following are charactersitics of qualitative forecasting methods? 1. Function of past…
A: Companies use the qualitative forecasting method when the company is not able to make decisions…
Q: The moving average forecasting method is typically bestfor products:a) Functional b) Innovativec)…
A: The correct answer is option c) Mature. Moving Average formula is used to average the number of…
Q: 1.Forecasts are essential for the ..............operations of business organizations. 2.In a simple…
A: Forecasting is the process of predicting future data based on previous or past data and information.…
Q: Add your personal life experiences or engagement on topic of forecasting and Quality management.
A: Forecasting and Quality Management. Forecasting is that the process of estimate and predicate about…
Q: A. Delphi method B. naive approach C. decision maker's intuition D. market survey E. sales…
A: Quantitative forecasting:- Using expert judgement, qualitative forecasting is a technique for…
Q: a. what are forecasts? b. what are the costs associated with forecasting, and with not forecasting?
A: Cost is the total money incurred to manufacture the products in the production system of an…
Q: What type of analytics seeks to recognize what is going on as well as the likely forecast and make…
A: Analytics which involves predictions based on historical and current data is known as predictive…
Q: Contrast the use of MAD and MSE in evaluating forecasts?
A: Forecasting is the process of identifying the demand accurately for future production planning and…
Q: What category of forecasting techniques uses managerial judgment in lieu of numerical data?
A: Qualitative forecasting.
Q: a) Plot the monthly sales data. b) Forecast January sales using each of the following: i) Naive…
A: Forecasting is deciding in advance what your future sales/demand will be based on various methods of…
Q: Explain the tradeoff between responsiveness and stability in forecasting system that uses…
A: Forecasting: Forecasting can be termed as prediction of future sales or demand of a product. It is a…
Q: Distinguish between the following types of forecasts:c. Causal versus naive
A: Forecasting is the process of identifying the demand accurately for future production planning and…
Q: Choose one qualitative forecasting technique from the following. O a. Regression analysis O b.…
A: Find the answers below: The Correct Answer is b) Market research
Q: What is the appropriate type of forecasting method to use in each of the following scenarios:a.…
A: a. Here, time series forecasting is used to forecast the demand for motel rooms next year since it…
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: Forecasting is utilized in which of the following areas? A) product demand B. process design (c) new…
A: Efficiency is the ability to reduce or eliminate the wastage of resources, money, and time in an…
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: The forecasting technique that gives progressively lower weights to all past data without dropping…
A: Forecasting is a method that utilizes recorded information as inputs to construct declared…
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: a. They generally work best when combined with a quantitative approach
A: Qualitative research comes from open-ended questions. It collects data in a different way. Instead…
Q: Which of the following is not a type of qualitative forecasting? A. Delphi method B. naive…
A: Research helps in forecasting the future which further helps in taking better decisions and in…
Q: Firms keep supplies of inventory for which of the following reasons? To provide a feeling of…
A: The company keeps inventory supplies to run the operations smoothly and to ensure that the company…
Q: Forecasts are generally wrong.a. Why are forecasts generally wrong?
A: Forecasting is used to predict future changes or demand patterns. Forecasting is the process of…
Q: Which of the following are qualitative methods of forecasting? O a. Sales force composite O b.…
A: Subjective research is done in a characteristic setting. The principle information gathering…
Q: What is the appropriate type of forecasting method to use in each of the followingscenarios:a.…
A: a. As in this the Holiday Inn, Inc., is attempting to predict the demand next year for motel rooms,…
Q: A check-processing center uses exponetial smoothing to forecast the number of incoming checks each…
A: Given, Checks received in June = 40 million Forecast for June = 42 million Smoothing Constant = 0.15
Q: Qualitative or judgmental forecasting models may use quantitative data. True False
A: False
Q: You manager gave you February 2021 actual sales and sales forecast. This is the only raw data you…
A: A business estimate might be a forecast of future deals income. Deals conjectures are normally…
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: (a) Understanding the inherent strengths and weaknesses of each forecasting method is important for…
A: Forecasting can be defined as the method which uses historical data to estimate future data or…
Q: Describe why such forecasting devices as moving average , weighted averages and exponential…
A: To be determined: why such forecasting devices as moving average , weighted averages and…
Q: State what is a qualitative forecasting model and it uses under forecasting
A: To be determined: what is a qualitative forecasting model and it uses under forecasting
Q: Which one of the forecasting methods is capable of handling large amounts of data and uncovering…
A: Forecasting: It is a method that practices historical data as inputs to make knowledgeable…
Q: All forecasts are built on one of three information bases: what people say, what people do, or what…
A: The рrосess оf gаthering infоrmаtiоn fоr а better understаnding оf the tаrget mаrket is…
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.…
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- 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_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 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 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_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_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_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_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?Do the sales prices of houses in a given community vary systematically with their sizes (as measured in square feet)? Answer this question by estimating a simple regression equation where the sales price of the house is the dependent variable, and the size of the house is the explanatory variable. Use the sample data given in P13_06.xlsx. Interpret your estimated equation, the associated R-square value, and the associated standard error of estimate.
- 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?A small computer chip manufacturer wants to forecast monthly ozperating costs as a function of the number of units produced during a month. The company has collected the 16 months of data in the file P13_34.xlsx. a. Determine an equation that can be used to predict monthly production costs from units produced. Are there any outliers? b. How could the regression line obtained in part a be used to determine whether the company was efficient or inefficient during any particular month?Management of a home appliance store wants to understand the growth pattern of the monthly sales of a new technology device over the past two years. The managers have recorded the relevant data in the file P13_05.xlsx. Have the sales of this device been growing linearly over the past 24 months? By examining the results of a linear trend line, explain why or why not.
