K305/M305 Homework #5

Due Tuesday, February 29, 2000

 

1.    Use exponential smoothing method with trend and seasonality to forecast copy usage in the B&E Division (COPY_SETS.XLS).  Use an alpha of 0.5, a beta of 0.5, and a gamma of .5 to get started and use weeks 1 through 5 to initialize the model.  Forecast sales for the next five weeks (i.e.16-20).  Graph the observed and forecasted values on a fully labeled line graph.  Does this seem to be the appropriate forecasting method for this data?  Use Solver to determine if there is a better set of smoothing constants.

 

2.    Use the three methods that we learned for determining the regression model (formulas, built-in Excel functions, and Data Analysis Tools) on the SCANNER data set.  For this, month would be the independent variable and unit would be the dependent variable.  Construct a fully labeled scatter plot that includes the trend line.  State the regression model and interpret its coefficients.  Interpret and comment on the Coefficient of Determination, the Correlation Coefficient, and the Standard Error of the Estimate.