Question: Using the time series shown in Problem 16.25, answer the following questions: a. Forecast the demand for each quarter in Year 4 using seasonal dummy

Using the time series shown in Problem 16.25, answer the following questions:

a. Forecast the demand for each quarter in Year 4 using seasonal dummy variables and a best subsets regression.

b. Interpret the meaning of the coefficients for the seasonal dummy variables.

c. Calculate the MAD for this forecast.


Problem 16.25

Consider the following time series:

Year 1 Year 2 Year 3 Quarter Demand Quarter Demand Quarter Demand


a) Forecast the demand for each quarter in Year 4 using multiplicative decomposition.

b) Interpret the meaning of the seasonal components.

c) Calculate the MAD for this forecast.

Year 1 Year 2 Year 3 Quarter Demand Quarter Demand Quarter Demand 28 31 1 27 2 18 2 18 15 25 3 22 3 20 4 14 4 4

Step by Step Solution

★★★★★

3.28 Rating (174 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

a Dummy Variables S1 S2 S3 Quarter 1 0 0 0 Quarter 2 1 0 0 Quarter 3 0 1 0 Quarter 4 0 0 1 Set x1 Pe... View full answer

blur-text-image
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)

Word file Icon

483-M-S-F (255).docx

120 KBs Word File

Students Have Also Explored These Related Statistics Questions!

Q:

Using the time series shown in Problem 16.24, answer the following questions: a. Forecast the demand for each quarter in Year 4 using seasonal dummy variables and a best subsets regression. b....

Q:

Using the time series shown in Problem 16.1, answer the following questions: a. Forecast the demand for Period 8 using a three- period weighted moving average with weights 4, 3, and 1, applying 4 to...

Q:

Using the time series shown in Problem 16.3, answer the following questions: From Problem a. Forecast the demand for Period 9 using exponential smoothing with trend adjustment and setting = 0.4 and ...

Q:

Using the time series shown in Problem 16.25, answer the following questions: a. Forecast the demand for each quarter in Year 4 using seasonal dummy variables and a best subsets regression. b....

Q:

Using the time series shown in Problem 16.24, answer the following questions: a. Forecast the demand for each quarter in Year 4 using seasonal dummy variables and a best subsets regression. b....

Q:

Northwest Construction builds permanent docks and seawalls along the southern shore of Long Island, New York. Although the firm has been in business only five years, revenue has increased from...

Q:

Using the Annual Report of your selected company answer the following questions in the Discussion: What is the value of the company's inventory at year end? What was the amount of cost of goods sold...

Q:

Using the Annual Report of your selected company answer the following questions in the Discussion: What is the value of the company's inventory at year end? What was the amount of cost of goods sold...

Q:

Using the Annual Report of your selected company answer the following questions in the Discussion: What are adjusting entries and why are they necessary? In your chosen company, which accounts might...

Q:

The paper below"Preventing the use of deadly force:the relationship between police agency policies and the rates of office-involved gun deaths",and answer the following questions: What is the...

Q:

Butterwords is considering the launch of a new product which would involve the distribution of books throughout Africa. They are uncertain how much profit can be generated, but has undertaken...

Q:

The standard unit cost of NoRome Company is given as below: Direct materials: 4 lbs. @ P4.00 16.00 24.00 Direct labor: 3 hrs. @ P8.00 Variable overhead: 3 hrs. @P2.00 6.00 Fixed overhead 3 hrs. @...

Q:

18. Shi Ltd. determines that its goodwill is impaired. It finds that its recoverable amount is HK$3,600,000 and its recorded goodwill is HK$4,000,000. The fair value of its identifiable assets is...

Q:

Problem 8-10 (LO 5) Worksheet, purchase in blocks, subsidiary stock dividend, subsidiary purchase of parent shares, machinery sale, merchandise. On January 1, 20X3, Heckert Company purchases a...

Q:

Shown here are the top twelve biggest oil and gas companies in the world according to Forbes. Use these as population data and answer the questions that follow. Production Volume Company...

Q:

The U.S. Department of the Interior releases figures on mineral production. Following are the 15 leading states in nonfuel mineral production in the United States for 2010. State .......Value ($...

Q:

The radio music listener market is diverse. Listener formats might include adult contemporary, album rock, top 40, oldies, rap, country and western, classical, and jazz. In targeting audiences,...

Q:

Consider a firm that will produce one unit of gold a year from today. The price of gold next year is either 5 0 0 with probability p = 0 . 8 , or 2 0 0 with probability 1 - p . Assume gold price risk...

Q:

Bond X is a premium bond making semiannual payments. The bond has a coupon rate of 8.3 percent, a YTM of 6.3 percent, and has 16 years to maturity. Bond Y is a discount bond making semiannual...

Q:

Given 8 random bits forming a byte, can you determine whether the byte represents an integer or a character? Why?