A dry cleaner uses exponential smoothing to forecast equipment usage at its main plant. August usage was forecasted to be 53 percent of capacity; actual usage was 52 percent of capacity. A smoothing constant of .05 is used
A dry cleaner uses exponential smoothing to forecast equipment usage at its main plant. August usage was forecasted to be 53 percent of capacity; actual usage was 52 percent of capacity. A smoothing constant of .05 is used.
a. Prepare a forecast for September. (Round your final answer to 2 decimal places.)
Forecast for September______ percent of capacity
b. Assuming actual September usage of 60 percent, prepare a forecast for October usage. (Round your answer to 2 decimal places.)
Forecast for October __________ percent of capacity
2. Long-Life Insurance has developed a linear model that it uses to determine the amount of term life insurance a family of four should have, based on the current age of the head of the household. The equation is:
y = 157 -0.50 x where y = Insurance needed ($000) x = Current age of head of household
b. Use the equation to determine the amount of term life insurance to recommend for a family of four if the head of the household is 47 years old. (Round your answer to 2 decimal places.)
amount of term life insurance____________ thousand
3. An electrical contractor’s records during the last five weeks indicate the number of job requests:
|
|
|
|
|
|
|
|
Week: |
1 |
2 |
3 |
4 |
5 |
|
Requests: |
28 |
24 |
22 |
23 |
30 |
|
|
Click here for the Excel Data File
Predict the number of requests for week 6 using each of these methods:
a. Naive.
Number of request __________
b. A four-period moving average. (Round your answer to 2 decimal places.) Number of request_________
c. c. Exponential smoothing with α = 0.25. Use 27 for week 2 forecast. (Round your intermediate forecast values and final answers to 2 decimal places.)
number of request
f3______
f4_______
f5_______
f6_______
4. The manager of a fashionable restaurant open Wednesday through Saturday says that the restaurant does about 30 percent of its business on Friday night, 30 percent on Saturday night, and 20 percent on Thursday night. What seasonal relatives would describe this situation? (Round your answers to 2 decimal places.)
Wednesday ______
Thursday _________
Friday _________
Saturday ________
5. Compute seasonal relatives for this data using the simple averaging (SA) method:
|
Quarter |
Year 1 |
Year 2 |
Year 3 |
Year 4 |
|
1 |
2 |
1 |
1 |
0 |
|
2 |
6 |
6 |
7 |
6 |
|
3 |
1 |
4 |
5 |
8 |
|
4 |
4 |
4 |
6 |
8 |
|
|
(Round all your answers to three decimal points.)
Quarter 1 ________
Quarter2 _______
Quarter3 ________
Quarter4 _______
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