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BSOP 209 Operations Analysis

Week 2



Chapter 4 Forecasting, Homework

4.24  Howard Weiss, owner of a musical instrument distributorship, thinks that demand for bass drums may be related to the number of television appearances by the popular group Stone Temple Pilots during the previous month. Weiss has collected the data shown in the following table:

a)    Graph these data to see whether a linear equation might describe the relationship between the group’s television shows and bass drum sales.


Week 2 Quiz: (TCO 1) For a moving average forecast to be of any use to us, what assumption must be true? (TCOs 3 and 4) In a regression equation, what is y hat? (TCOs 1 and 2) Given the following data, calculate the two-year moving averages for years 5                    through 10. (TCOs 3, 4 and 5) While conducting an accounting audit of their finished goods inventory, Farmer’s Market clerks were able to construct the following data one of their nonseasonal baskets. (a) Use trend projection to estimate the relationship between time and sales (state the equation). (b) Calculate forecasts for the first four months of the next year.