Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN: 9781305506381
Author: James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher: Cengage Learning
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Chapter 5, Problem 1.6CE
Estimate the double-log (log linear) time trend model for log cruise ship arrivals against log time. Estimate a linear time trend model of cruise ship arrivals against time. Calculate the root mean square error between the predicted and actual value of cruise ship arrivals. Is the root mean square error greater for the double log non-linear time trend model or for the linear time trend model?
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Historical demand for Peeps is as displayed in the table.
Month Demand
January 11
February 18
March 31
April 39
May 44
June 53
July 67
August 82
September 96
Develop forecasts from June through October using these techniques: Holt's method with alpha=0.2
and beta=0.1. For Holt's model, the level and trend for May are assumed to be 44 and
12. Judge which forecast method is the best based on MAD.
You own a restaurant near the beach. Business has been growing each
year, but obviously spikes during the summer months. A regression
produces the following equation:
M = 30,000 + 500t + 1,000S
Where M is monthly sales, t is years past 2010, and S is a dummy variable
for the summer months. If the month is June, July, or August, insert a "1"”.
If not, the value for S is zero.
What are the predicted sales for July 2020?
Enter as a value.
Chapter 5 Solutions
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Ch. 5 - The forecasting staff for the Prizer Corporation...Ch. 5 - Prob. 2ECh. 5 - Metropolitan Hospital has estimated its average...Ch. 5 - Prob. 4ECh. 5 - A firm experienced the demand shown in the...Ch. 5 - The economic analysis division of Mapco...Ch. 5 - The Questor Corporation has experienced the...Ch. 5 - Bell Greenhouses has estimated its monthly demand...Ch. 5 - Savings-Mart (a chain of discount department...Ch. 5 - Prob. 1.1CE
Ch. 5 - Plot the logarithm of arrivals for each...Ch. 5 - Logarithms are especially useful for comparing...Ch. 5 - Prob. 1.4CECh. 5 - In attempting to formulate a model of the...Ch. 5 - Estimate the double-log (log linear) time trend...Ch. 5 - Prob. 2.1CECh. 5 - Prob. 3.1CECh. 5 - Prob. 3.2CECh. 5 - Prob. 3.3CE
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