2. Operations Management
3. use excel to answer all of the following questions 1...

# Question: use excel to answer all of the following questions 1...

###### Question details

Use Excel to answer all of the following questions:

#1.       ABC company records during the past six weeks indicate the number of jobs requests:

 WEEK 1 2 3 4 5 6 Requests 45 38 36 42 46 43

Required:  Predict the number of requests for Week 7 using each of the following methods:

a.      Naïve

b.      A four-period moving average.

c.      Exponential smoothing with a = .30. Assume that the forecast for Week 2 = 43. Keep in mind that to apply this method, you must start forecasting in Week 2!

#2.

A.   Obtain the linear trend equation (first, plot the data and the regression line on the same graph, or alternatively use Data Analysis tool to obtain the “a” and the “b” values of the equation) for the following data on new checking accounts for Fair Savings Bank and use it to predict expected new checking accounts for periods 15 through 20. Enter the data on Excel using Period (X) as Column 1 and New Accounts (Y) in the second column.

B.     Determine the correlation coefficient and interpret it.

C.     What percentage of variation in new accounts is explained by the independent variable (time)?

 Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 New Accounts 208 215 210 230 237 232 248 250 253 267 280 275 292 308

#3. Two independent methods of forecasting based on judgment and experience have been prepared each month for the past 10 months.  The forecasts and actual sales are as follows:

 Month SALES (ACTUAL) FORECAST I FORECAST II 1 780 772 768 2 789 785 788 3 794 790 792 4 780 784 790 5 776 770 774 6 772 768 770 7 765 761 759 8 775 771 775 9 786 784 788 10 790 788 788

REQUIRED:         Compute the MAD and MSE for each forecast.  Does either forecast seem superior?  Explain.

###### Solution by an expert tutor 