Question: The number of customers at a bank likely will vary
The number of customers at a bank likely will vary by the hour of the day and by the day of the month. What are the implications of this for choosing a forecasting model?
Answer to relevant QuestionsSuggest a number of independent variables for a regression model to predict the potential sales volume of a given location for a retail store (e.g., a video rental store). Prepare a spreadsheet model for the ferry passenger data in Table 14.6 , and recal-culate the forecasts using an a of 0.3, a b of 0.1, and a g of 0.2. Has this change in the smoothing constants improved the MAD? Prepare a spreadsheet model for the commuter airline’s weekly load factor data in Table 14.4 , and recalculate the forecasts using an a of 0.2 and a b of 0.2. Have you improved on the original MAD? How valid are the assumptions for the simple EOQ model? The A & M Hobby Shop carries a line of radio- controlled model racing cars. Demand for these cars is assumed to be a constant rate of 40 cars per month. The cars cost $ 60 each, and ordering costs are approximately $ 15 per ...
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