Question: Acme Inc. is looking to predict their spending plan as best as they can and to make significant improvements to estimate future demand in the
Acme Inc. is looking to predict their spending plan as best as they can and to make significant improvements to estimate future demand in the presence of uncertainty You are the Private Fleet Manager and you want to make sure you can accurately budget for diesel fuel by using a suitable forecasting technique You have been given basic raw data to forecast and make recommendations.
Perform a forecasting analysis to predict the week future forecast for diesel fuel. Use :
ap moving average.
b Exponential smoothing. Choose the best alpha value that you would recommend and make sure to explain your approach.
c Is the linear regression between WTI and Diesel cost a good model for this exercise? What are your recommendations?
d Research another factor besides WTI and Diesel cost try to find the data for this variable and then perform a multiple linear regression to see if you can get a good model.
Date WTI Diesel $gal
Jan
Jan
Jan NA
Jan
Jan
Feb
Feb
Feb NA
Feb
Mar
Mar
Mar
Mar
Apr
Apr
Apr
Apr
May
May
May
May
May NA
Jun
Jun
Jun
Jun
Jul
Jul
Jul
Jul
Jul
Aug
Aug
Aug
Aug
Sep NA
Sep
Sep
Sep
Oct
Oct
Oct
Oct
Oct
Nov
Nov
Nov
Nov
Dec
Dec
Dec
Dec NA
Jan NA
Jan
Jan NA
Jan
Jan
Feb
Feb
Feb NA
Feb
Mar
Mar
Mar
Mar
Apr
Apr
Apr
Apr
Apr
May
May
May
May NA
Jun
Jun
Jun
Jun
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