(Exercise 5.1 - Prizer)
(a) Predicted value of S = (100 x $13,000 x $1,200) / $20,000 = $78,000
(b) When P = $17,500, S increases to $89,143 [= (100 x $13,000 x $1,200) / $17,500].
(c) A potential weakness is that it does not account for seasonal changes.
NOTE: As HOMEWORKLIB Answering Policy, the 1st question has been answered.
1. Exercise 5.1 The forecasting staff for the Prizer Corporation has developed a model to predict...
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b-2. Using the MAD method of testing the forecasting model's performance, plus actual data from 3 years ago through the second quarter of this year, how well did the model perform? Based on MAD, an a performs better than an a of (Click to select) c. Using the decomp (Click to select) 0.3 0.2 hod of forecasting, forecast earnings per share for the last two quarters of this year and all four quarters of next year. (Negative values should be...
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Examples 1,2,3 1. Beyond Tea Inc. wants to forecast sales of its menthol green tea. The company is considering either using a simple mean or a three-period moving average to forecast monthly sales. Given sales data for the past 10 months use both forecasting methods to forecast periods 7 to 10 and then evaluate each. Which method should they use? Use the selected method to make a forecast for month 11. (Show all calculations .... Please read Examples1, 2, 3...
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