Problem

FOC Sales. Techcore is a high-tech company 4 located in Fort Worth, Texas. The company pro...

FOC Sales. Techcore is a high-tech company 4 located in Fort Worth, Texas. The company produces a part called a fibre-optic connector (FOC) and wants to generate forecasts of the sales of FOCs over time. The company has weekly sales data for the past 265 weeks. The data are in the file FOC8 on the CD in the following columns: SALES, MONTH (numbers the month in which the observations were taken), FOV, COMPOSITE, INDUSTRIAL, TRANS, UTILITY, FINANCE, PROD, and HOUSE. (The SALES and FOV data have been disguised to provide confidentiality.) The variables are defined as follows:

FOV: Sales of a complementary product; sales of FOV are much easier to forecast than FOC sales

COMPOSITE: Friday close of the NYSE Composite Index

INDUSTRIAL: Friday close of the NYSE Industrial Stocks

TRANS: Friday close of the NYSE Transportation Stocks

UTILITY: Friday close of the NYSE Utility Stocks

FINANCE: Friday close of the NYSE Financials

PROD: Industrial Production-computers, communications equipment, and semiconductors, not seasonally adjusted

HOUSE: Monthly housing permits in thousands, seasonally adjusted rates

You have been hired as a consultant to Techcore to help build the forecasting model. Create a two-part report for Techcore that includes an executive summary with the essential nontechnical results of your study and a technical report that contains the details of your model building process.

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Solutions For Problems in Chapter 8