Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

# 1 . The Fastgro Fertilizer Company distributes fertilizer to various lawn and garden shops. The company must base its quarterly production schedule on a

#1. The Fastgro Fertilizer Company distributes fertilizer to various lawn and garden shops. The company must base its quarterly production schedule on a forecast of how many tons of fertilizer will be demanded from it. The company has gathered this data for the past 3 years.
a) Compute the 3-term (3-quarter) moving average and the absolute value of the error, for 2016 Q4 to 2019 Q1.
b) Compute the 5-term (5-quarter) moving average and the absolute value of the error for 2017 Q2 to 2019 Q1.
c) Compute the linear trend line using a regression model for 2016 Q1 to 2019 Q1. Also compute the absolute value of the error.
d) Compare the forecasts developed in parts a), b), and c) using MAD. Which method appears to be the most accurate? Do any of the methods exhibit any bias (consistently higher or lower than the actual values)? Show your answers in the spaces below the table.
e) Graph the quarter on the x axis and the demand on the y axis and include the graph below. Can you identify any cycles or seasonal patterns? (Highlight the two datasets, click Insert, then select Scatterplot with lines.)
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Successful Time Management

Authors: Patrick Forsyth

4th Edition

0749475811, 978-0749475819

More Books

Students also viewed these General Management questions

Question

Describe the nature of negative messages.

Answered: 1 week ago