Given : The demand for a product for the last six years has been 15, 15, 17, 18, 20, and 19. The manager wants to predict the demand for this time series using the following simple linear trend equation : $tr_t = 12 + 2t$

To find : What are the forecast errors for the 5th and 6th years?

Solution :

Data : 15, 15, 17, 18, 20, and 19.

The simple linear trend equation is given as, $tr_t = 12 + 2t$

For t = 5 years

$tr_t = 12 + 2(5)$

$tr_t = 12 +10$

$tr_t = 22$

Observed $tr_t = 20$

Predicted $tr_t = 22$

Forecast error = Observed – Predicted = 20 – 22 = -2

Absolute forecast error = |-2| = 2 .

For t = 6 years

$tr_t = 12 + 2(6)$

$tr_t = 12 +12$

$tr_t = 24$

Observed $tr_t = 19$

Predicted $tr_t = 24$

Forecast error = Observed – Predicted = 19 – 24 = -5

Absolute forecast error = |-5| = 5.

7 0

4 years ago

HELP I GIVE BRAINLIEST:)

V125BC [204]

Answer:

A. 7/9

Step-by-step explanation:

8 0

3 years ago

if gh¢400.00 is deposited at a bank at 10% per annum compounded quarterly, how long will it take the deposit to double it value.

balu736 [363]

9514 1404 393

Answer:

7 years

Step-by-step explanation:

The multiplier each quarter is 1 +10%/4 = 1.025. The number of quarters, n, that must pass before the value is multiplied by 2 is given by ...

1.025^n = 2

Taking logarithms, we can solve for n:

n×log(1.025) = log(2)

n = log(2)/log(1.025) ≈ 28.071

It will take 28 quarters, or 7 years, for the value to double.

6 0

3 years ago