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
In this problem, we are going to measure the money multiplier one year prior to the Great Recession (12/2006) and compare it to the money multiplier 5 years since (12/2011).  The i

May i know what we shoud write regarding above topic ?Value Chain as a guide to resource analysis

Process for making informed predictions Informed predictions are made by the help of strategic planning process and there are three steps to successfully make the informed predicti

what companies provide game theory models

Q. What you mean by organizational Change? Making modifications in the functions along with practices of an organization is known as organizational change. Change results emplo

3. People have a peculiar behaviour over a product and why is it so. How a product is altered to attract customers? What are the techniques companies follow to retain and add new c


What do you mean by Rookie Management in IT industry?

what is the aim and objective of management

What is the argument behind the desire for affirmative action or employment equity? Do you agree that such policies are necessary? Respond to the argument that affirmative action “