MGMT2026 Production and Operations Management Semester 1 2023-2024 QUESTION 1 a. Jerry Sam owns and operates a chain of 12 department stores in New Ville. Sales figures and advertising expenses for the stores are provided in the table below. Sales are given in millions of dollars: advertising expenses are in tens of thousands of dollars. i. Calculate the slope for the regression line. (show all working) ii. Calculate the intercept for the regression line. (show all working) iii. Write the equation for the regression line. iv. Forecast sales for a store if advertising spending is:- 1. $240,000 2. $300,000 [8 marks] [3 marks] [2 marks] [1 mark] [1 mark] b. Kim's department at a local department store has tracked the sales of a product over the last nine weeks. The demand can be seen in the table below. i. Forecast demand using exponential smoothing with an alpha of 0.3 , and an initial forecast of 30.0 for period 2 to 9. [4 marks] ii. Use a 5-period moving average, forecast the demand up to period 9.[2 marks] iii. Using MAD, determine which forecasting technique is better. [4 marks]