Metropolitan Hospital has estimated its average monthly bed needs as
where
Assume that no new hospital additions are expected in the area in the foreseeable future. The following monthly seasonal adjustment factors have been estimated, using data from the past five years:
Forecast Metropolitan’s bed demand for January, April, July, November, and December 2007.- If the following actual and forecast values for June bed demands have been recorded, what seasonal adjustment factor would you recommend be used in making future June forecasts?
Trending nowThis is a popular solution!
Chapter 5 Solutions
Bundle: Managerial Economics, Loose-leaf Version, 14th + MindTap Economics, 1 term (6 months) Printed Access Card
- Bell Greenhouses has estimated its monthly demand for potting soil to be the following: N=400+4X where N=monthlydemandforbagsofpottingsoil X=timeperiodsinmonths(March2006=0) Assume this trend factor is expected to remain stable in the foreseeable future. The following table contains the monthly seasonal adjustment factors, which have been estimated using actual sales data from the past five years: Forecast Bell Greenhouses demand for potting soil in March, June, August, and December 2007. If the following table shows the forecasted and actual potting soil sales by Bell Greenhouses for April in five different years, determine the seasonal adjustment factor to be used in making an April 2008 forecast.arrow_forwardMetropolitan Hospital has estimated its average monthly bed needs, N, as: N = 460 + 9X where X = time period (months); (January 2002 = 0) Assume that no new hospital additions are expected in the area in the foreseeable future. The following monthly seasonal adjustment factors have been estimated, using data from the past five years: Forecast Metropolitan's bed demand for January, April, July, November, and December 2007. Month Adjustment Factor (%) Forecast January +5 April -15 July +4 November -5 December -25 Suppose the following actual and forecast values for June bed demands have been recorded. Year Forecast Actual 2007 1,045 1,139 2006 937 974 2005 829 895 2004 721 743 2003 613 656 2002 505 515 What seasonal adjustment factor would you recommend be used in making future June forecasts? O 5.5% O 0.2% O 2.3%arrow_forward3 Metropolitan Hospital has estimated its average monthly bed needs as MONTH January Assume that no new hospital additions are expected in the area in the foreseeable future. The following monthly seasonal adjustment factors have been estimated, using data from the past five years: April July November December N = 1,000+ 9X where X = time period (months); January 2002 = 0 N = monthly bed needs ADJUSTMENT FACTOR (%) +5 -15 +4 -5 -25 a. Forecast Metropolitan's bed demand for January, April, July, November, and December 2007.arrow_forward
- AD has estimated the following demand relationship for its product over the last four years, using monthly observations: ln Qt = 4.932- 1.238 ln Pt + 1.524 ln Yt-1 + 0.4865lnQt-1(2.54) (1.38) (3.65) (2.87)R2= 0.8738where Q = sales in units, P = price in Rs., Y is income in Rs,000, and the numbers in brackets are t-statistics.a. Interpret the above model.b. Make a sales forecast if price is Rs. 9, income last month was Rs. 25,000 and sales last month were 2,981 units.c. Make a sales forecast for the following month if there is no change in price or income.d. If price is increased by 5 per cent in general terms, estimate the effect on sales, stating any assumptions.arrow_forwardYou are an economist. Your friend started a new business selling masks. She asked for your help in making some important decisions. From the data obtained from her, you computed the Price Elasticity of Demand (PED) of Masks, and found absolute PED in February was 1.26, and since then the absolute PED of Masks declined by 30% in June. (a) Based on the PED of June, you would advise your friend for an increase/decrease/unchanged in the price - Insert one word answer (increase/decrease/unchanged) (b) The market price of the mask in July was Tk15 per unit. The total revenue earned in July was Tk300. You received the data for August and observed that the price now in August is Tk26 per unit and the quantity of masks sold in August is 9 units. Calculate the absolute value of Price Elasticity of Demand (PED) for masks from July to August. Do not convert into percentage. Give your answer in 2 decimal places. Eg. If you get PED = -0.253 then submit 0.25arrow_forwardThe problem is based on the following data given. Observations of the demand for a certain part stocked at a parts supply depot during the calendar year 2013 were ( as shown ). Determine the one-step-ahead forecasts for the demand for January 2014 using 3‑, 6-, and 12-month moving averages.arrow_forward
- You are an economist. Your friend started a new business selling masks. She asked for your help in making some important decisions. From the data obtained from her, you computed the Price Elasticity of Demand (PED) of Masks, and found absolute PED in February was 1.86, and since then the absolute PED of Masks declined by 55% in June. (a) Based on the PED of June, you would advise your friend for an increase/decrease/unchanged in the price - (b) The market price of the mask in July was Tk20 per unit. The total revenue earned in July was Tk300. You received the data for August and observed that the price now in August is Tk28 per unit and the quantity of masks sold in August is 12 units. Calculate the absolute value of Price Elasticity of Demand (PED) for masks from July to August.arrow_forwardHand written solutions are strictly prohibited.arrow_forwardPayless Shoe Source sees a 35 per cent increase in sales of its athletic shoesduring a 1 week, half-price sale.arrow_forward
- Nonearrow_forwardA large company in the communication and publishing industry hs quantified the relationship between the price of one of its products and the demand for this product as Price = 160 -0.01 xDemand for an annual printing of this particular product. The foxed costs per year (ie. per printing) = $4T 000 and the variable cost per unit = $35. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 7,000 units per year. The maximum profit that can be achieved is S. (Round to the nearest dolar.) The unit price at the point of optimal demand is S per unit (Round to the nearest cent)arrow_forwardA company selling widgets has found that the number of items sold, x, depends upon the price, p at 90000 which they're sold, according the equation z = (0.6p + 1)? Due to inflation and increasing health benefit costs, the company has been increasing the price by $0.06 per month. Find the rate at which revenue is changing when the company is selling widgets at $8 each. Revenue is decreasing by dollars per month Hint: Give your answer as a positive value.arrow_forward
- Managerial Economics: Applications, Strategies an...EconomicsISBN:9781305506381Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. HarrisPublisher:Cengage Learning