Questions from General Operations Management

Q: Two independent methods of forecasting based on judgment and experience have been

Two independent methods of forecasting based on judgment and experience have been prepared each month for the past 10 months. The forecasts and actual sales are as follows: a. Compute the MSE and MA...

Q: Long-Life Insurance has developed a linear model that it uses

Long-Life Insurance has developed a linear model that it uses to determine the amount of term life insurance a family of four should have, based on the current age of the head of the household. The eq...

Q: The manager of a seafood restaurant was asked to establish a pricing

The manager of a seafood restaurant was asked to establish a pricing policy on lobster dinners. Experimenting with prices produced the following data: a. Plot the data and a regression line on the s...

Q: The following data were collected during a study of consumer buying patterns

The following data were collected during a study of consumer buying patterns: 1. Plot the data. 2. Obtain a linear regression line for the data. 3. What percentage of the variation is explained by t...

Q: Lovely Lawns, Inc., intends to use sales of lawn fertilizer

Lovely Lawns, Inc., intends to use sales of lawn fertilizer to predict lawn mower sales. The store manager estimates a probable six-week lag between fertilizer sales and mower sales. The pertinent dat...

Q: The manager of a travel agency has been using a seasonally adjusted

The manager of a travel agency has been using a seasonally adjusted forecast to predict demand for packaged tours. The actual and predicted values are as follows: a. Compute MAD for the fifth period...

Q: Refer to the data in problem 22. a. Compute

Refer to the data in problem 22. a. Compute a tracking signal for the 10th month for each forecast using the cumulative error for months 1 to 10. Use action limits of ± 4. Is there bias present? Expla...

Q: The classified department of a monthly magazine has used a combination of

The classified department of a monthly magazine has used a combination of quantitative and qualitative methods to forecast sales of advertising space. Results over a 20-month period are as follows: M...

Q: A textbook publishing company has compiled data on total annual sales of

A textbook publishing company has compiled data on total annual sales of its business texts for the preceding nine years: a. Using an appropriate model, forecast textbook sales for each of the next...

Q: A manager has just received an evaluation from an analyst on two

A manager has just received an evaluation from an analyst on two potential forecasting alternatives. The analyst is indifferent between the two alternatives, saying that they should be equally effecti...