Homework

CO 1) Budgets are prepared for: (Points : 4)

an organization

a department

a product

All of the above

2. (TCO 2) Using the table “Computer Sales Time Series”, calculate the forecast for computer sales (in thousands) for Week 13 using a six day moving average.

Computer Sales Time Series

Week

Sales (in thousands)

1

2

2

4

3

5

4

3

5

6

6

7

7

5

8

8

9

4

10

2

11

3

12

5

(Points : 4)

3.50

4.50

5.00

5.50

3. (TCO 2) Using the table “Paint Sales Time Series”, calculate the mean absolute deviation for a three day moving average.

Paint Sales Time Series

Week

Sales (000’s of gallons)

1

6

2

8

3

10

4

9

5

11

6

12

7

10

8

8

9

7

10

9

(Points : 4)

2.67

1.76

2.54

3.67

4. (TCO 2) Using the table “Gasoline Sales Time Series”, calculate the forecast for gasoline sales (in thousands) for Week 13 using a three day weighted moving average. Use a weight of .60 for the most recent observation, .30 for the second most recent, and .10 for the third most recent.

Gasoline Sales Time Series

Week

Sales (000’s of gallons)

1

17

2

21

3

19

4

23

5

18

6

16

7

20

8

18

9

22

10

20

11

15

12

22

(Points : 4)

18.40

18.60

19.40

19.70

5. (TCO 2) Using the table “Gasoline Sales Time Series”, calculate the forecast for gasoline sales (in thousands) for Week 13 using exponential smoothing and a smoothing constant of .10.

Gasoline Sales Time Series

Week

Sales (000’s of gallons)

1

17

2

21

3

19

4

23

5

18

6

16

7

20

8

18

9

22

10

20

11

15

12

22

(Points : 4)

17.56

17.88

18.48

18.64