The Fresh Detergent Case Enterprise Industries produces Fresh, a brand of liquid detergent. In order to more effectively manage its inventory, the company would like to better predict demand for Fresh To develop a prediction model, the company has gathered data concerning demand for Fresh over the last 48 sales periods. Each sales period is defined as one month. The variables are as follows: Demand = Y = demand for a large size bottle of Fresh (in 100,000) Price = the price of Fresh as offered by Ent. Industries AIP = the average industry price ADV=Ent Industries Advertising Expenditure (in $100,000) to Promote Fresh in the sales period. DIFF = AIP - Price = the "price difference" in the sales period 1- Download the data from Course Blackboard site into Excel spreadsheet. 2- Make time series scatter plots of all five variables (five graphs). Insert trend line, equation, and R-squared. Observe graphs and provide interpretation of results. 3- Construct scatter plots of Demand vs. DIFF and Demand vs. ADV. Demand vs. AIP, and Demand vs. Price. Insert fitted line, equation, and R-squared. Observe graphs and provide interpretation. Note that Demand is always on the Y axis. 4- Obtain the correlation matrix for all six variables and list the variables that have strong correlation with Demand High correlation is r > 0.80 Explain your findings in plain language 5- Use 3-month and 6-month moving averages to predict the demand for January 2022. Find MAD for both forecasts and identify the preferred one based on each calculation is the moving average suitable method for forecasting for this data set? Explain your reasoning 6- Use Exponential smoothing forecasts with alpha of 0.1,0.2, ,0.9 to predict January 2022 demand Identify the value of alpha that results in the lowest MAD 7. Find the monthly seasonal indices for the demand values using Simple Average (SA) method Find the de-seasonalized demand values by dividing monthly demand by seasonal indices I 3 677 words English (United States) Type here to search O Help Share c 1 No Space Heading 1 Heading 2 Find Replace Select Normal Title Dictate
0.80 Explain your findings in plain language 5- Use 3-month and 6-month moving averages to predict the demand for January 2022. Find MAD for both forecasts and identify the preferred one based on each calculation is the moving average suitable method for forecasting for this data set? Explain your reasoning 6- Use Exponential smoothing forecasts with alpha of 0.1,0.2, ,0.9 to predict January 2022 demand Identify the value of alpha that results in the lowest MAD 7. Find the monthly seasonal indices for the demand values using Simple Average (SA) method Find the de-seasonalized demand values by dividing monthly demand by seasonal indices I 3 677 words English (United States) Type here to search O Help Share c 1 No Space Heading 1 Heading 2 Find Replace Select Normal Title Dictate
