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    Ishtiaq Ahmed Nishat
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    The document discusses forecasting ice cream demand using two techniques: simple linear regression and exponential smoothing. A manufacturer collected ice cream sales data over 10 weeks that shows a correlation between increasing temperature and more gallons sold. A linear regression model developed from this data forecasts 175 gallons will be sold if the temperature is 85 degrees next week. An exponential smoothing technique that applies weights of 0.3 and 0.4 to past data recalculates the forecast to a different value for next week.

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    Practice Forecast Problems

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    The document discusses forecasting ice cream demand using two techniques: simple linear regression and exponential smoothing. A manufacturer collected ice cream sales data over 10 weeks that shows a correlation between increasing temperature and more gallons sold. A linear regression model developed from this data forecasts 175 gallons will be sold if the temperature is 85 degrees next week. An exponential smoothing technique that applies weights of 0.3 and 0.4 to past data recalculates the forecast to a different value for next week.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    7 views1 page

    Practice Forecast Problems

    Uploaded by

    Ishtiaq Ahmed Nishat
    The document discusses forecasting ice cream demand using two techniques: simple linear regression and exponential smoothing. A manufacturer collected ice cream sales data over 10 weeks that shows a correlation between increasing temperature and more gallons sold. A linear regression model developed from this data forecasts 175 gallons will be sold if the temperature is 85 degrees next week. An exponential smoothing technique that applies weights of 0.3 and 0.4 to past data recalculates the forecast to a different value for next week.

    Copyright:

    © All Rights Reserved
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    of 1

    FORECASTING DEMAND : USING EXPONENTIAL SMOOTHING AND SIMPLE

    LINEAR REGRESSION

    Q.1. An ice-cream manufacturer has been observing the results of ice-cream sales
    over the last 10 weeks during summer and have noticed how sales vary as the
    average weekly daytime temperature in summer goes up and down. The results are
    as follows:
    Week
    1
    2
    3
    4
    5
    6
    7
    8
    9
    10

    Temperature (Fahrenheit)
    73
    65
    81
    90
    75
    77
    82
    93
    86
    79

    Gallons of Ice-cream sold


    110
    95
    135
    160
    97
    105
    120
    175
    140
    121

    (a) Develop a Linear Regression Model for this data and forecast the ice
    cream consumption if the average weekly daytime temperature is
    expected to be 85 degrees next week.
    (b) If Alpha=0.3 and Beta = 0.4, using exponential smoothing technique, recalculate the forecast for next week.

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