Q1

We use data to develop a regression model: y (Sales)=15.2 + 4.1*X (Buyer Income). The output shows the following parameters: R = = 0.78 Sig of F = 0.08 Regression Coeff for X = 4.1 P value for X=0.08 Should we use the model? Please base your response on class material and discussions. Yes Cannot tell from the info provided No Yes - but only if the client accepts a confidence level of 92% in the predictive value of the model Here're the unit sales for an apparel item category (say jeans) for the past 4 months: 23 pieces 23 pieces 23 pieces 23 pieces What's most likely going on? Demand > Sales Demand is constant The data is incorrect Demand = Sales Going 'long' (including more periods) on a moving average forecast is usually most appropriate when: Significant fluctuations in market demand are historically seen to have been mostly driven by random events Significant fluctuations in market demand are historically seen to have been mostly driven by specific events that reflect true, sustainable changes in the market The meeting of operations, purchasing, accounting, finance, and perhaps selected key suppliers and customers is an example of the jury of executive opinion forecasting - please comment: True False Question 7 True or False? An average based forecast based on multiple periods of historical data is generally not appropriate for data with strong trend and/or seasonality patterns. True 10 points False Saved