Business satisfaction program analysis
If Paul is uncertain about the return for Investment 1 in Scenario 1, then this return has to be dollars in order to make Paul indifferent between these two investments (i.e. the two investments would have the same EMV.) (Please only enter an integer and include no units.)
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Sam has a cleaning service. To better allocate his resources, he would like to forecast his weekly orders based on the order number he received in the past 13 weeks as shown in the following table.
Week Demand
Week 1 11
Week 2 14
Week 3 16
Week 4 10
Week 5 15
Week 6 17
Week 7 11
Week 8 14
Week 9 17
Week 10 12
Week 11 14
Week 12 16
Week 13 15
Question 1 of 3 5.0 Points
Using a three week moving average, Sam’s forecast for his Week 14 order number is . (Please round to two decimal points and include no units.)
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Question 2 of 3 5.0 Points
Using a three week weighted moving average with weights 3, 2, and 1 given to the most recent, second most recent, and third most recent week, respectively, Sam’s forecast for his Week 14 order number is . (Please round to two decimal points and include no units.)
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Question 3 of 3 5.0 Points
If the MAD for moving average is 4.17 and the MAD for weighted moving average is 2.38, then which forecast is more accurate?
A. Moving average
B. Weighted moving average
C. The same
D. Not enough information to evaluate.
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A grocery store needs to sell 3,000 cartons of 2L 2% milk per month. The sales is relatively constant throughout the month. The owner of this grocery store purchases milk from a supplier 50 miles away for $2 per carton, and it takes a day to restock. The holding cost per carton per month is $1.5, and the ordering cost per order is about $18.5 including labor, gas and depreciation. Consider a month of 30 days.