Statistics for Business & Economics, Revised (MindTap Course List)
12th Edition
ISBN: 9781285846323
Author: David R. Anderson, Dennis J. Sweeney, Thomas A. Williams, Jeffrey D. Camm, James J. Cochran
Publisher: South-Western College Pub
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Textbook Question
Chapter 17, Problem 47SE
Canton Supplies, Inc., is a service firm that employs approximately 100 individuals. Managers of Canton Supplies are concerned about meeting monthly cash obligations and want to develop a forecast of monthly cash requirements. Because of a recent change in operating policy, only the past seven months of data that follow are considered to be relevant.
Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
Cash Required ($1000s) | 205 | 212 | 218 | 224 | 230 | 240 | 246 |
- a. Construct a time series plot. What type of pattern exists in the data?
- b. Use Holt’s linear exponential smoothing with α = .6 and β = .4 to forecast cash requirements for each of the next two months.
- c. Using Minitab or Excel, develop a linear trend equation to forecast cash requirements for each of the next two months.
- d. Would you recommend using Holt’s linear exponential smoothing with α = .6 and β = .4 to forecast cash requirements for each of the next two months or the linear trend equation? Explain.
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canton Supplies, inc., is a service firm that employs approximately 100 individuals.Managers of canton Supplies are concerned about meeting monthly cash obligations andwant to develop a forecast of monthly cash requirements. Because of a recent changein operating policy, only the past seven months of data that follow are considered to berelevant.Month 1 2 3 4 5 6 7Cash Required ($1000s) 205 212 218 224 230 240 246a. construct a time series plot. What type of pattern exists in the data?b. Using Minitab or excel, develop a linear trend equation to forecast cash requirementsfor each of the next two months.
The Vintage Restaurant, on Captive Island near Fort Meyers, Florida, is owned and operated by Karen Payne. The restaurant just completed its second year of operation. Below are the sales for those two years (in ten thousands of dollars).
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January
57
61
February
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March
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April
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May
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June
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August
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September
68
68
October
51
50
November
71
64
December
75
58
a) Construct a time-series plot in excel. (Label axes and graph)
b) Develop a six month moving average. Compute MSE and forecast the amount of sales for the next month.
c) Use α = 0.2 to compute the exponential smoothing values. Compute MSE and forecast for the next month.
d) Compare the result for the six month average and exponential smoothing. Which appears to provide a better…
After its move in 1990 to La Junta, Colorado, and its new initiatives, the DeBourgh Manufacturing Company began an upward climb of record sales. Suppose the figures shown here are the DeBourgh monthly sales figures from January 2001 through December 2009 (in $1,000s).
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b) Deseasonalize the data using Multiplicative model with a 0.5 weighted moving average. Produce a time series plot of the deseasonalized data and add a trendline.
c) Forecast the sales from January to December of the year 2010.
d) Include a discussion of the general direction of sales and any seasonal tendencies that might be occurrinG
Month
2001
2002
2003
2004
2005
2006
2007
2008
2009
January
139.7
165.1
177.8
228.6
266.7
431.8
381
431.8
495.3
February
114.3
177.8
203.2
254
317.5
457.2
406.4
444.5
533.4
March
101.6
177.8
228.6
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368.3
457.2
431.8
495.3
635
April
152.4
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Chapter 17 Solutions
Statistics for Business & Economics, Revised (MindTap Course List)
Ch. 17.2 - Consider the following time series data. Week 1 2...Ch. 17.2 - Refer to the time series data in exercise 1. Using...Ch. 17.2 - Exercises 1 and 2 used different forecasting...Ch. 17.2 - Consider the following time series data. Month 1 2...Ch. 17.3 - Consider the following time series data. Week 1 2...Ch. 17.3 - Consider the following time series data. Month 1 2...Ch. 17.3 - Refer to the gasoline sales time series data in...Ch. 17.3 - Refer again to the gasoline sales time series data...Ch. 17.3 - With the gasoline time series data from Table...Ch. 17.3 - With a smoothing constant of = .2, equation...
Ch. 17.3 - For the Hawkins Company, the monthly percentages...Ch. 17.3 - Corporate triple-A bond interest rates for 12...Ch. 17.3 - The values of Alabama building contracts (in ...Ch. 17.3 - The following time series shows the sales of a...Ch. 17.3 - Ten weeks of data on the Commodity Futures Index...Ch. 17.3 - The U.S. Census Bureau tracks the median price for...Ch. 17.4 - Consider the following time series data. a....Ch. 17.4 - Prob. 18ECh. 17.4 - Consider the following time series. a. Construct a...Ch. 17.4 - Prob. 20ECh. 17.4 - Prob. 21ECh. 17.4 - Prob. 22ECh. 17.4 - The president of a small manufacturing firm is...Ch. 17.4 - FRED (Federal Reserve Economic Data), a database...Ch. 17.4 - Automobile unit sales at B. J. Scott Motors, Inc.,...Ch. 17.4 - Giovanni Food Products produces and sells frozen...Ch. 17.4 - Prob. 27ECh. 17.5 - Consider the following time series. a. Construct a...Ch. 17.5 - Consider the following time series data. a....Ch. 17.5 - The quarterly sales data (number of copies sold)...Ch. 17.5 - Air pollution control specialists in southern...Ch. 17.5 - South Shore Construction builds permanent docks...Ch. 17.5 - Prob. 33ECh. 17.5 - Three years of monthly lawn-maintenance expenses...Ch. 17.6 - Consider the following time series data. a....Ch. 17.6 - Refer to exercise 35. a. Deseasonalize the time...Ch. 17.6 - The quarterly sales data (number of copies sold)...Ch. 17.6 - Three years of monthly lawn-maintenance expenses...Ch. 17.6 - Air pollution control specialists in southern...Ch. 17.6 - Electric power consumption is measured in...Ch. 17 - The weekly demand (in cases) for a particular...Ch. 17 - The following table reports the percentage of...Ch. 17 - United Dairies. Inc., supplies milk to several...Ch. 17 - Prob. 44SECh. 17 - Prob. 45SECh. 17 - The Mayfair Department Store in Davenport, Iowa,...Ch. 17 - Canton Supplies, Inc., is a service firm that...Ch. 17 - The Costello Music Company has been in business...Ch. 17 - Consider the Costello Music Company problem in...Ch. 17 - Refer to the Costello Music Company problem in...Ch. 17 - Refer to the Costello Music Company time series in...Ch. 17 - Hudson Marine has been an authorized dealer for CD...Ch. 17 - Refer to the Hudson Marine problem in exercise 52....Ch. 17 - Refer to the Hudson Marine problem in exercise 53....Ch. 17 - Refer to the Hudson Marine data in exercise 53. a....Ch. 17 - Forecasting Food and Beverage Sales The Vintage...Ch. 17 - Forecasting Lost Sales The Carlson Department...
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