Experts averag - forecasting methods, Corporate Finance

Assignment Help:

This method simply calculates the average of a number of expert estimates. Let E denote the number of experts, and mn,e denote the forecast of expert e, e =1, ... ,E, for SKU n 2N. Then the average experts' forecast mn for SKU n can be written as

1242_Experts averag - forecasting methods.png

This averaging method was applied by Fisher and Raman (1996), Fisher et al. (2000), who use panels of 7 and 4 experts, respectively. The use of an expert panel (also referred to as a buying committee) in forecasting has also been documented by Raman (1999), Mantrala and Rao (2001). Combining forecasts of experts increases accuracy, because inconsistencies of one expert tend to cancel out the inconsistencies of another (Blattberg and Hoch, 1990)


Related Discussions:- Experts averag - forecasting methods

Evaluate accounting method, Question 1: Collect a current annual report (2...

Question 1: Collect a current annual report (2009) of an Australia listed company. Select the firm that reported the following assets. Select BOTHtypes of assets. Proper

What is the beta of the portfolio, Question: There are two stocks, stoc...

Question: There are two stocks, stock A and stock B. The price of stock A today is $70. The price of stock A next year will be $50 if the economy is in recession, $80 if the ec

Describe the determinants of corporate failures, Professor Steward Hamilton...

Professor Steward Hamilton wrote a case on the Enron collapse. He stated that when Enron failed and filed for bankruptcy protection on December 2001, the entair world came to a sh

Net Working Capital, #questionSelecting Kanton Company''s Financing Strateg...

#questionSelecting Kanton Company''s Financing Strategy and Unsecured Short-Term Borrowing Arrangement. Morton Mercado, the CFO of Kanton Company, carefully developed the estimate

Finance, Question 5 A company has a total investment of Rs 500,000 in asset...

Question 5 A company has a total investment of Rs 500,000 in assets, and 50,000 outstanding ordinary shares at Rs 10 per share (par value). It earns a rate of 15 per cent on its in

Derive the fund separation theorem, Question 1: (a) What are the compe...

Question 1: (a) What are the competing theories which have been put forward to explain the term structure of interest rates? Which theories do the evidence tend to support?

Determine raw materials inventory-cost of goods sold, Lott Corporation show...

Lott Corporation showed the following balances in its inventory accounts as of January 1: Raw materials inventory $28,800 Work-in-process inventory 36,000 Finished goods i

Calculate the net present value, Here is the pro-forma income statement for...

Here is the pro-forma income statement for Semen Indonesia, an overseas venture that Cemex is planning to invest in.  In this exercise, you will need to evaluate the inve

Describe the capital asset pricing model, Question 1: (a) Explain clear...

Question 1: (a) Explain clearly two semi-strong form tests of the Efficient Market Hypothesis (EMH), one supporting and one rejecting the EMH. (b) Summarise the evidence in

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd