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Forecasting Numericals

1) Café coffee produces commercial coffee cups with near full production capacity for over a year. Plant manager wants to develop a long-range forecast using 10 years of sales data to plan facility needs for the next 3 years. 2) Jack asked an engineer to do a simple linear regression on historical data to predict engineering services demand for his company based on highway construction contracts in the area. 3) Determine the trend line equation to predict sales for an additional 2 weeks based on 10 weeks of sales data for a product. Also predict sales for the next 2 years if advertising expenditure is Rs. 6 & 7 lakhs based on the relationship between past sales and advertising amounts. 4) Build a causal model to

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Aakash Prasad
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151 views1 page

Forecasting Numericals

1) Café coffee produces commercial coffee cups with near full production capacity for over a year. Plant manager wants to develop a long-range forecast using 10 years of sales data to plan facility needs for the next 3 years. 2) Jack asked an engineer to do a simple linear regression on historical data to predict engineering services demand for his company based on highway construction contracts in the area. 3) Determine the trend line equation to predict sales for an additional 2 weeks based on 10 weeks of sales data for a product. Also predict sales for the next 2 years if advertising expenditure is Rs. 6 & 7 lakhs based on the relationship between past sales and advertising amounts. 4) Build a causal model to

Uploaded by

Aakash Prasad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1) Café coffee produces commercial coffee cups that are sold all over the world.

The company
operates with a production capacity at near full capacity for over a year. Plant manager
thinks the sales growth will continue and he wants to develop long range forecast to help
the plant facility requirement for the next 3 years. Sales records for the past 10 years have
been compiled.
Year 1 2 3 4 5 6 7 8 9 10
Annual sales 1000 1300 1800 2000 2000 2000 2200 2600 2900 3200
(000’s of units)

2) Jack the general manager of precession engineering corporation thinks that his firms
engineering services supplied to high way construction firm are directly related to the
amount of highway construction contracts let in his geographic area. Jack asked malya one
of his engineers to perform a simple linear regression analysis on historical data.
a) Develop a regression equation for predicting the level of demand.
b) Use the regression equation to predict the level of demand for the next four quarters for
which the amount of contracts released are 260, 290, 300 & 270 (thousands)
c) Determine how closely demand is related to the amount of construction released.

Year Quarter Sales (000’s) Total amt of contract


released (000’s)
1 Q1 8 150
Q2 10 170
Q3 15 190
Q4 09 170
2 Q1 12 180
Q2 13 190
Q3 12 200
Q4 16 220

3) The sales of products for the next 10 weeks are below


Week 1 2 3 4 5 6 7 8 9 10
Sales 700 724 720 728 740 742 758 750 770 775
(units)
Determine the equation for trend line and predict sales for 11 th 12th week.
The sales of the product and its advertising expenditure for the past 6 years are as follows.
Sales (lakhs)Rs 2 3 2.5 2 2 3.5
Advertising (lakhs) 1 3 4 2 1 7
Determine the sales for the next 2 years if the advertising expenditure is Rs 6 & 7 lakhs also
determine to what extent advertising expenditure can boost the sales.
4) A manufacturer of tricycles in the age of 2 to 4 years commissioned a market research to
understand the factors that influence the demand for products after some detailed studies
the market research firm concluded that the demand is simple linear function of no. of
newly marriage couples on this assumption. Build a causal model for forecasting the demand
for tricycle if the no. of new marriage is 150 and 200.
New marriages 200 235 210 197 225 240 217 225
Demand for tricycles 165 184 180 145 190 169 180 170

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