Question 3b (10 points):

Apply Linear Regression to predict call volume from head count using the appropriate Excel template (Linerar_Regression Model.xlsx). Based on the upcoming acquisition of Cutter Corp on 7/1/2015, the forecast of head count for July 2015 is 77,000 (Estimator x value). Show your forecast below and attach the completed Excel template.

Call Volume Forecast for July 2015 (Causal Forecasting based on head count): _________________

Question 3c (10 points):

Calculate the Mean absolute deviation value of the Exponential Smoothing model (Question 3a) and the Average Estimation Error of the Linear Regression model (Question 3b).You will need to employ the Excel AVERAGE function for the Linear Regression Average Estimation Error (Cell: F36). Explain the difference between the MAD and Agv Est Error values.

Mean absolute deviation of Exponential Smoothing model, alpha=0.5: ______________________

Average Estimation Error for Causal Forecasting model based on headcount: __________________

Explanation of the difference in values:

Question 3d (20 points):

Considering your answers to Questions 3a, 3b and 3c and all the factors that have been described above, prepare a best forecast for July 2015.Show your forecast value below and explain and justify how you came up with this forecast.Finally, provide your recommendations to Mark on how to modify forecasting process and improve its accuracy.

Call Volume Forecast for July 2015 (My forecast): _________________

Explanation and Justification of Your Method:

Your Recommendations: