Compute the mean squared error , Management Theories

Central States Electric Company estimates its demand on time (in millions of kilowatt hours 0 to be:

D = 77 + 0.43Q
where Q refers to the sequential quarter number and Q = 1 for winter 1984. In addition, the multiplicative seasonal factors are as follows:
1. In addition, the multiplicative seasonal factors are as follows:
Quarter Factor (Index)
Winter .8
Spring 1.1
summer 1.4
Fall .7
Forecast energy use for the four quarters of 2009  beginning with winter.

The Carbondale Hospital is considering the purchase of ambulance. The TheXarbondale Hospital is considering the purchase of ambulance. The decision will rest partly on the anticipated mileage" be driven next year. The miles driven during the past 5
years are as follows:

Year

Mileage

1

3000

2

4000

3

3400

4

3800

5

3700

a) Forecast the mileage for next year using a 2-year moving average.
b) Find the MAD based on the 2-year moving average forecast in part (a), (Hint: You will have only 3 years of matched data.)
c) Use a weighted 2-year moving average with weights of .4 and .6 to forecast next year's mileage. (The weight of .6 is for the most recent year.) What MAD results from using this approach to forecasting? (Hint: You will have only 3 years of matched data.)
d) Compute the forecast for year 6 using exponential smoothing, an initial forecast for year 1 of 3,000 miles, and a = .5.

 The number of transistors (in millions) made at a plant in Japan during the past 5 years as follows:

Year

Transistors
140

2

160

3

190

4

200

5

210

a) Forecast the number of transistors to be made next year, using linear regression.
b) Compute the mean squared error (MSE) when using linear regression.
c) Compute the mean absolute percent error (MAPE).

Meile Machine Shop, Inc.. has a 1-year contract for the production of 200,000 gear housings for a new off-road vehicle. Owner Meile hopes the contract will be extended and the volume increased next year. Meile has developed costs for three alternatives. They are general-purpose equipment (GPE), flexible manufacturing system (FMS), and expensive, but efficient, dedicated machine (DM). The cost data follow:

 

General- Purpose Equipment (GPE)

Flexible Manufacturing System (FMS  )

Dedicated Machine

 (DM)

Annual   contracted
units

200,000

200,000

200,000

Annual fixed cost

$100,000

$200,000

$500,000

Per unit variable

$15.00

$14.00

$13.00

Which process is best for this contract?

*Problem 4.5:  Replace (b) as written with "Find the MAD based on a two-year moving average."

Posted Date: 2/25/2013 2:52:11 AM | Location : United States







Related Discussions:- Compute the mean squared error , Assignment Help, Ask Question on Compute the mean squared error , Get Answer, Expert's Help, Compute the mean squared error Discussions

Write discussion on Compute the mean squared error
Your posts are moderated
Related Questions
Write a note on different types of groups. Explain.

Scope of Circulation work Circulation work includes • Registration of members, • Lending, i.e., charging and discharging, • Renewals, i.e., persons who seek extension o

What are the significant factors that have led to the success of Shoppers’ Stop?

differentiate b/w radial and bilateral symmerty

Organising: Organizing consists of the following sub-functions:- a) Identifying and analyzing the activities for the achievement of objectives and implementation of plans.

Four method of survey: 1. Nature of the Population: The population maybe widely scattered then mail surveys are more appropriate and economic. If the respondents are not a

Illustrate the managerial functions along with their interrelationship. Describe the nature and significant of staffing.

give three topic on operations research

provide a table checklist for the orientation programme.

what are fmcg approaches to test marketing