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During year three, Pricilla starting collecting data on why people were buying dresses. She and the people working in the store would ask whether the

During year three, Pricilla starting collecting data on why people were buying dresses. She and the people working in the store would ask whether the purchase was for an event (homecoming, party, prom, or wedding. You noticed that sells were higher in warmer months and decided to use average month temperatures. Also, you decided the separate weddings from other events. The following is a breakdown of the data.

Wedding

Events

Average

Monthly

Temperature

Year 3 Demand

2

1

32

212

0

0

30

245

0

5

42

252

12

22

50

376

45

46

55

757

23

22

70

404

20

20

75

354

10

20

78

324

2

32

75

338

1

50

60

618

1

22

45

356

8

60

35

713

4949

Using the dress data above, calculate the following

1. Use Excels regression function to develop a multiple regression forecast for Pricilla Phashions

2. Indicate the r2 of the model, and whether all the coefficients for the regression are significant.

3. Using your regression model, calculate the dress sales for Year-3.

4. Using the actual Year-3 numbers check your forecast accuracy, by calculating CFE, MSE, MAD, MAPE, and the tracking signal

5. Finally, compare the causal forecast model you just developed to the best model that you developed previously. Recommend which forecasting model should Pricilla use.

 

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