math hW wwek 4

Chapter 15 1. The manager of the Carpet City outlet needs to make an accurate forecast of the demand for Soft Shag carpet (its biggest seller). If the manager does not order enough carpet from the carpet mill, customer will buy their carpet from one of Carpet City’s many competitors. The manager has collected the following demand data for the past 8 months: Month Demand for Soft Shag Carpet (1,000 yd.) 1 10 2 9 3 8 4 9 5 10 6 12 7 14 8 11 a. Compute a 3-month moving average forecast for months 4 through 9. b. Compute a weighted 3-month moving average forecast for months 4 through 9. Assign weights of 0.55, 0.35, and 0.10 to the months in sequence, starting with the most recent month. c. Compare the two forecasts by using MAD. Which forecast appears to be more accurate? 2. The manager of the Petroco Service Station wants to forecast the demand for unleaded gasoline next month so that the proper number of gallons can be ordered from the distributor. The owner has accumulated the following data on demand for unleaded gasoline from sales during the past 10 months: MAT540 Homework Week 4 Page 2 of 5 Month Gasoline Demanded (gal.) October 775 November 835 December 605 January 450 February 600 March 700 April 820 May 925 June July 1500 1200 a. Compute an exponential smoothed forecast, using an α value of 0.4 b. Compute the MAD. 3. Emily Andrews has invested in a science and technology mutual fund. Now she is considering liquidating and investing in another fund. She would like to forecast the price of the science and technology fund for the next month before making a decision. She has collected the following data on the average price of the fund during the past 20 months: Month Fund Price 1 $55 ¾ 2 54 ¼ 3 55 1/8 4 58 1/8 5 53 3/8 6 51 1/8 7 56 ¼ 8 59 5/8 9 62 ¼ 10 59 ¼ 11 62 3/8 12 57 1/1 MAT540 Homework Week 4 Page 3 of 5 13 58 1/8 14 62 ¾ 15 64 ¾ 16 66 1/8 17 68 ¾ 18 60.5 19 65.875 20 72.25 a. Using a 3-month average, forecast the fund price for month 21. b. Using a 3-month weighted average with the most recent month weighted 0.5, the next most recent month weighted 0.30, and the third month weighted 0.20, forecast the fund price for month 21. c. Compute an exponentially smoothed forecast, using α=0.3, and forecast the fund price for month 21. d. Compare the forecasts in (a), (b), and (c), using MAD, and indicate the most accurate. 4. Carpet City wants to develop a means to forecast its carpet sales. The store manager believes that the store’s sales are directly related to the number of new housing starts in town. The manager has gathered data from county records on monthly house construction permits and from store records on monthly sales. These data are as follows: Monthly Carpet Sales (1,000 yd.) Monthly Construction Permits 9 17 14 25 10 8 12 7 15 14 9 7 24 45 21 19 20 28 MAT540 Homework Week 4 Page 4 of 5 29 28 a. Develop a linear regression model for these data and forecast carpet sales if 30 construction permits for new homes are filed. b. Determine the strength of the causal relationship between monthly sales and new home construction by using correlation. 5. The manager of Gilley’s Ice Cream Parlor needs an accurate forecast of the demand for ice cream. The store orders ice cream from a distributor a week ahead; if the store orders too little, it loses business, and if it orders too much, the extra must be thrown away. The manager belives that a major determinant of ice cream sales is temperature (i.e.,the hotter the weather, the more ice cream people buy). Using an almanac, the manager has determined the average day time temperature for 14 weeks, selected at random, and from store records he has determined the ice cream consumption for the same 14 weeks. These data are summarized as follows: Week Average Temperature (Degrees) Ice Cream Sold (gal.) 1 68 80 2 70 115 3 73 91 4 79 87 5 77 110 6 82 128 7 85 164 8 90 178 9 85 144 10 92 179 11 90 144 12 95 197 13 80 144 14 75 123 MAT540 Homework Week 4 Page 5 of 5 a. Develop a linear regression model for these data and forecast the ice cream consumption if the average weekly daytime temperature is expected to be 85 degrees. b. Determine the strength of the linear relationship between temperature and ice cream consumption by using correlation. c. What is the coefficient of determination? Explain its meaning.

Order a unique copy of this paper
(550 words)

Approximate price: $22

Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Order your essay today and save 25% with the discount code: COCONUTPlace Order
+