# Question: Reconsider Prob 27 7 7 For each of the forecasting methods specified

Reconsider Prob. 27.7-7. For each of the forecasting methods specified in parts (b), (c), and (d) (with smoothing constants α = 0.5 and β = 0.5 as needed), use the corresponding procedure in the forecasting area of your IOR Tutorial to obtain the requested forecasts. Then use the accompanying graph that plots both the sales data and forecasts to answer the following questions for these forecasting methods.

(a) Based on your examination of the graphs for the five forecasting methods, which method do you feel is doing the best job of forecasting with the given data? Why?

(b) Management now has been informed that an error was made in calculating the sales for April, but a corrected sales figure has not yet been obtained. Therefore, for each of the five forecasting methods, management wants to know which of the original monthly forecasts would change now because of changing the sales figure for April. Answer this question by dragging vertically the blue dot that corresponds to April sales and observing which of the red dots (corresponding to monthly forecasts) move.

(c) Repeat part (b) if the sales for April change from 150 to 125.

(d) Repeat part (b) if the sales for April change from 150 to 175.

(a) Based on your examination of the graphs for the five forecasting methods, which method do you feel is doing the best job of forecasting with the given data? Why?

(b) Management now has been informed that an error was made in calculating the sales for April, but a corrected sales figure has not yet been obtained. Therefore, for each of the five forecasting methods, management wants to know which of the original monthly forecasts would change now because of changing the sales figure for April. Answer this question by dragging vertically the blue dot that corresponds to April sales and observing which of the red dots (corresponding to monthly forecasts) move.

(c) Repeat part (b) if the sales for April change from 150 to 125.

(d) Repeat part (b) if the sales for April change from 150 to 175.

**View Solution:**## Answer to relevant Questions

Choosing an appropriate value of the smoothing constant α is a key decision when applying the exponential smoothing method. When relevant historical data exist, one approach to making this decision is to apply the method ...The Centerville Water Department provides water for the entire town and outlying areas. The number of acre-feet of water consumed in each of the four seasons of the three preceding years is shown below. (a) Determine the ...Reconsider Prob. 27.9-4. Use the linear regression procedure in the forecasting area of your IOR Tutorial to generate the linear regression line. On the resulting graph that shows this line and the five data points (as blue ...Figure 27.3 shows CCW’s average daily call volume for each quarter of the past three years, and column F of Fig. 27.4 gives the seasonally adjusted call volumes. Management now wonders what these seasonally adjusted call ...Ivy University is planning to construct a new building for its engineering school. This project will require completing all of the activities in the above table. For most of these activities, a set of predecessor activities ...Post your question