What average cost increase has firm been realizing per year


Assignment

The monthly sales of a new business software package at a local discount software store were as follows:

Week 1 2 3 4 5 6 7 8 9 10
Sales 460 415 432 450 488 512 475 502 449 486

Plot the data and provide insights about the time series.

Find the best number of weeks to use in a moving-average forecast based on MSE.

c. Find the best single exponential smoothing model to forecast these data.

Consider the quarterly sales data for Worthington Health Club shown here (also available on the worksheet C9P9 in the Data Workbook):

Quarter Total
Year 1 2 3 4 Sales
1 4 2 1 5 12
2 6 4 4 14 28
3 10 3 5 16 34
4 12 9 7 22 50
5 18 10 13 35 76

Develop a four-period moving average model and compute MSE for your forecasts.

b. Find a good value of a for a single exponential smoothing model and compare your results to part (a).

Using the factory energy cost data in the spreadsheet, find the best moving average and exponential smoothing models. Compare their forecasting ability with the regression model developed in the chapter. Which model would you choose and why?

The president of a small manufacturing firm is concerned about the continual growth in manufacturing costs in the past several years. The data series of the cost per unit for the firm's leading product over the past eight years are given as follows:

Year Cost/Unit ($) Year Cost/Unit ($)

1 20.00 5 26.60

2 24.50 6 30.00

3 28.20 7 31.00

4 27.50 8 36.00

a. Construct a chart for this time series. Does a linear trend appear to exist?

b. Develop a simple linear regression model for these data. What average cost increase has the firm been realizing per year?

Format your assignment according to the following formatting requirements:

1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.

2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.

3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.

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Operation Management: What average cost increase has firm been realizing per year
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