Question: Using the factory energy cost data in Exhibit 11.11, find the best moving average and exponential smoothing models. Compare their forecasting ability with the regression

Using the factory energy cost data in Exhibit 11.11, find the best moving average and exponential smoothing models. Compare their forecasting ability with the regression model developed in the chapter. Which model would you choose and why?
kMSE
2 ... 267109.98
3 ... 420795.85
4 ... 544054.44

Exhibit 11.11 Factory Energy Costs (This is available in the OM5 Data

Exhibit 11.11 Factory Energy Costs (This is available in the OM5 Data Workbook on the CourseMate Web site.) B D. E H 1 Factory Energy Costs 2 Year Energy Costs 1 $15,355.38 2 $15,412.91 3 $15,926.64 Energy Costs 3 20000 4 5 19000 4 $16,614.18 5 $16,918.69 6 $16,837.14 7 $16,812.51 8 $17,102.45 9 $17,461.89 10 $17,846.76 18000 7 17000 8 16000 9 10 15000 11 14000 12 13000 13 11 $18,187.93 12000 14 12 $18,782.19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 15 13 $18,863.18 Year 16 14 $18,914.00 17 15 $19,319.15

Step by Step Solution

★★★★★

3.17 Rating (161 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

k MSE 2 26710998 3 42079585 4 54405444 For the moving average models k 2 is best For exponential smo... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

546-B-M-L-O-M (4241).docx

120 KBs Word File

Students Have Also Explored These Related Management Leadership Questions!

Easyuse Tool Co. manufactures an electric motor that it uses in several of its products. Management is considering whether to continue manufacturing the motors or to buy them from an outside source....

Matchless Corp. manufactures radios that it uses in several of its products. Management is considering whether to continue manufacturing the radios or to buy them from an outside source. The...

Sager Company manufactures variations of its product, a technopress, in response to custom orders from its customers. On May 1, the company had no inventories of goods in process or finished goods...

Using the factory energy cost data in Exhibit 9.11, find the best moving average and exponential smoothing models using the Moving Average and Exponential Smoothing Excel templates. Compare their...

Q1 Using the factory energy cost data in the table below, find the best moving average and exponential smoothing models. Book Using the factory energy cost data in the table below, find the best...

Smoothing constant options go from 0.1 to 0.9 Model options (single exponential smoothing - regression - moving average) PLEASE: do not round intermediate calculations, otherwise, the MSE will be...

Using the factory energy cost data in the table below, find the best moving average and exponential smoothing models using the Moving Average and Exponential Smoothing Excel templates. Year Energy...

Using the factory energy cost data in the table below, find the best moving average and exponential smoothing models. Year Energy Costs 1 15,363.60 2 15,418.58 3 15,922.93 4 16,610.60 5 16,905.42 6...

Using the factory energy cost data in the table below, find the best moving average and exponential smoothing models. Year 1 2 3 4 5 6 7 Energy Costs 15,341.10 15,407.94 15,937.41 16,613.92 16,923.32...

I will rate you, thanks! Using the factory energy cost data in the table below, find the best moving average and exponential smoothing models using the Moving Average and Exponential Smoothing Excel...

Below is information for year ended 12/31/12 for Company A and Company B. Return on total assets for Company A and B for 2012 are (useNOPAT): Company IB A) B) C) D) Company A 6.0% 8.4% 10.000 14.000...

The Fresno Corporation makes water pumps. The Engine Division makes the engines and supplies them to the Assembly Division, where the pumps are assembled. Fresno is a profitable corporation that...

The average life of a certain type of small motor is 10 years with a standard deviation of 2 years. The manufacturer replaces free all motors that fail while under guarantee. If she is willing to...

Compare the three levels of market targeting that companies can use in choosing how many segments to target. Provide an example for each of the three targeting options. (AACSB: Written and Oral...

The local Quick Burger fast food restaurant has a drive through window. Customers in cars arrive at the window at the rate of 10 per hour (Poisson distributed). It requires an average of four minutes...

From 3:00 P.M. to 8:00 P.M. the local Big-W Supermarket has a steady arrival of customers. Customers finish shopping and arrive at the checkout area at the rate of 80 per hour (Poisson distributed)....

Customers arrive at the lobby of the exclusive and expensive Ritz Hotel at the rate of 40 per hour (Poisson distributed) to check in. The hotel normally has three clerks available at the desk to...

Need help with this question Life on Other Planets Forty-three percent of people believe that there is life on other planets in the universe. A scientist does not agree with this nding. He surveyed...

Refer to the following selected financial information from Frankle Corp. Compute the company's working capital. Current Assets 306,450 Plant assets 338,000 Current Liabilities 107,800 Net sales...

please explain if you can 2 The table alongside shows the heights of dancers in a ballet Height h (cm) Frequency class. 120