User Account

All Pages

How forecasting methods can deal with trend and seasonality

Assignment Help Finance Basics
Reference no: EM131642805

Question: The Sales2 variable in the file from the previous problem was created from the Sales1 variable by multiplying by monthly seasonal factors. Basically, the summer months are high and the winter months are low. This might represent the sales of a product that has a linear trend and seasonality.

a. Repeat parts a, b, and c from the previous problem to see how well these forecasting methods can deal with trend and seasonality.

b. Now use Winters' method, with various values of the three smoothing constants, to forecast the series. Can you do much better? Which smoothing constants work well?

c. Use the ratio-to-moving-average method, where you first deseasonalize the series and then forecast (by any appropriate method) the deseasonalized series. Does this perform as well as, or better than, Winters' method?

d. What can you conclude from your findings in parts a, b, and c about forecasting this type of series?

Reference no: EM131642805

Questions Cloud

What is sustainable competitive advantage : What is the difference between strengths, competitive advantage, and sustainable competitive advantage - identifying the strengths and weaknesses
Describe veterans administration medical centers structure : Describe the Veterans Administration Medical Centers (VAMC) structure. Precise division of labor between explicitly described job positions.
Determine the beginning balance for retained earnings : Use this information and determine Alpha Company's: the Net Income (Net Loss) the 2017 Fiscal Year and the beginning balance for Retained Earnings
Should engskov avoid or delay developing certain strategies : Should Engskov avoid or delay developing certain strategies, given Schultz’s reluctance to involve Starbucks in political action?
How forecasting methods can deal with trend and seasonality : Repeat parts a, b, and c from the previous problem to see how well these forecasting methods can deal with trend and seasonality.
Describe civil commitment : Describe the ethical issues related to sentencing offenders with mental illnesses - Describe civil commitment
How the new product idea was analyzed before design : How the new product idea was analyzed before design and production. The role of marketing in design and production. The level of success of the new product.
Perspective on how to decide matters of sexual morality : Which perspective on how to decide matters of sexual morality is most convincing to you, Utilitarian, Kantian, or Natural Law? Why?
Internal analysis of their company resources-capabilities : What is the primary reason why managers conduct an internal analysis of their company’s resources and capabilities?

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the fair present value of the the given bonds

Calculate the fair present value of the following bonds, all of which have a 10 percent coupon rate (paid semiannually), face value of $1,000, and a required rate of return of 8 percent.

  Additional profits after tax will amount to 18000 per year

you are a small business owner and you have the opportunity to expand your facility which will increase your

  What is the expected price of the stock six years from now

The stock's required rate of return is 12 percent and the stock's dividend is expected to grow at the same constant rate forever. What is the expected price of the stock six years from now?

  Linear programming tools and techniques

Make-up your own problem and apply the linear programming tools and techniques we have been learning (Chapters 7 and 8). You do not need to use real data here; instead, a reasonable and plausible objective function and constraints will suffice.

  Evaluate what was the united brands net income after tax

Federal income tax: united brands corporation just completed their latest fiscal year the firm had sales - Evaluate what was the United Brands net income after tax

  Describe the background issues

The question is from Finance and it is Powerpoint Presentation upon a new strategy for international business from finance point of view. This presentation will describe the background issues and will also list 3 pros and 3 cons of engaging in int..

  What factors are involved in this decision

A member of your board has asked if you have considered competitive bids for the distribution of your securities compared with a noegotiated contract with a particular firm. What factors are involved in this decision?

  What is the present value of the new drug

Once the patent expires, other pharmaeutical companies will be able to produce the same drug and competiton will likely drive profits to zero. What is the present value of the new drug if the interest rate is 8% per year?

  Prepare the journal entries on given month

Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40 million cash on October 1, 2012.

  Define money and outline its major functions

a) Define Money and outline its major functions. b) Explain the various motives of holding money.

  Interest rates are determined by nancial markets

Indicate whether the following statement is TRUE or FALSE and provide a short (max. 2 sentences) explanation in the space provided.

  Current liabilities are 900 sales are 5320 profit margin

le bleu co. has a ratio of long-term debt to total assets of .40 and a current ratio of 1.30. current liabilities are

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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