1. The figures below indicate the number of mergers that took place in the savin

Question

1.      The figures below indicate the number of mergers that took place in the savings and loan industry over a 12-year period.

a. Calculate a 5-year moving average to forecast the number of mergers for 2012.

b. Use the moving average technique to determine the forecast for 2005 to 2011. Calculate measurement error using MSE and MAD.

c. Calculate a 5-year weighted moving average to forecast the number of merg­ers for 2012. Use weights of 0.10, 0.15, 0.20, 0.25, and 0.30, with the most recent year weighted being the largest.

d. Use regression analysis to forecast the number of mergers in 2012.

Explanation / Answer

d. let X=1,2,3,....,12 for year 2000,2001,......,2011

regression equation is Y = -8.773+17.734x

for 2012 forecast put x=13

2012 forecast y=221.769

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.