Business Forecasting Techniques: Solutions and Analysis Details

This assignment presents solutions to several business forecasting problems. Solution 1 explores forecasting demand for soft shag carpet using 3-month moving average and weighted moving average methods, computing the Mean Absolute Deviation (MAD) to determine the most accurate forecast. Solution 2 focuses on gasoline demand at a service station, employing exponential smoothing to forecast future demand and calculating the Mean Absolute Percentage Deviation (MAPD). Solution 3 analyzes Science and Technology Mutual Fund prices, utilizing 3-month moving average, weighted moving average, and exponential smoothing forecasts, comparing MAD values to identify the most accurate method. Solution 4 uses regression analysis to forecast carpet sales based on monthly construction permits, calculating the regression equation, and correlation coefficient. Finally, Solution 5 employs regression analysis to forecast ice cream sales based on average temperatures, deriving the regression equation, correlation coefficient, and coefficient of determination, explaining the meaning of the coefficient of determination.