Chapter Summary & Homework
1)Please write a 3 to 4 paragraphs (1 page) chapter summary for CHAPTER 4 from the attached text book. Please summarize ONLY from the text book. No outside sources.
1- Name the different methods of quantitative approache and explain the main difference between them.
2- Sales figures and profits for the 12 stores of a company are in the table below. Sales are given in millions of dollars; profits are in hundreds of thousands of dollars. Calculate a regression line for the data. What is your forecast of profit for a store with sales of $27 million? $16 million?
Store Profit Sale
1 20 12
2 17 9
3 21 11
4 22 11
5 30 21
6 34 24
7 28 23
8 27 18
9 32 21
10 49 26
11 40 20
12 15 11
3- (a) Use a three-period moving average and Naive methods to forecast from month 4 to month 8. (b) Use the MAD to determine which method gives the most accurate forecast. Month Sales 1 20 2 25 3 22 4 26 5 22 6 24 7 26