Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer A-E with complete work and explanations typed. 1) Data collected on the yearly demand for 50-pound bags of fertilizer at Wallace Garden Supply are

Answer A-E with complete work and explanations typed. image text in transcribed
1) Data collected on the yearly demand for 50-pound bags of fertilizer at Wallace Garden Supply are shown in the following table. DEMAND FOR FERTILIZER (1,000S OF BAGS) YEAR 4 1 6 2 5 10 6 13 7 8 15 a) Develop a 3-year moving averages model to forecast sales. b) Develop a 3-year weighted moving averages model in which sales in the most recent year are given a weight of 2 and sales in the other 2 years are each given a weight of 1 c) Use exponential smoothing with a smoothing constant of 0.3 to forecast the demand for fertilizer. Assume that last period's forecast for year 1 is 5,000 bags to begin the procedure. d) Develop a trend line model to forecast sales. You may use excel to find the intercept and slope coefficients of the trend line. e) Which of the developed forecasts (3-year moving averages, weighted moving averages, exponential smoothing, and trend line) would you use based on each of MAD, MSE MAPE, and bias? Explain your answer. 2 9 1) Data collected on the yearly demand for 50-pound bags of fertilizer at Wallace Garden Supply are shown in the following table. DEMAND FOR FERTILIZER (1,000S OF BAGS) YEAR 4 1 6 2 5 10 6 13 7 8 15 a) Develop a 3-year moving averages model to forecast sales. b) Develop a 3-year weighted moving averages model in which sales in the most recent year are given a weight of 2 and sales in the other 2 years are each given a weight of 1 c) Use exponential smoothing with a smoothing constant of 0.3 to forecast the demand for fertilizer. Assume that last period's forecast for year 1 is 5,000 bags to begin the procedure. d) Develop a trend line model to forecast sales. You may use excel to find the intercept and slope coefficients of the trend line. e) Which of the developed forecasts (3-year moving averages, weighted moving averages, exponential smoothing, and trend line) would you use based on each of MAD, MSE MAPE, and bias? Explain your answer. 2 9

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

Financial Management For Nurse Managers

Authors: J. Michael Leger

5th Edition

1284230937, 9781284230932

More Books

Students also viewed these Finance questions

Question

Summarise the scope of HRM and the key HRM functions

Answered: 1 week ago