ME - Tutorial 9 ME - Tutorial 9

Q1. Victor Anderson, the owner of Anderson Belts,
Inc., is studying absenteeism among his employees.
His workforce is small, consisting of only five
employees. For the last three years he recorded the
following number of employee absences, in days, for
each quarter.
Q1. Victor Anderson, the owner of Anderson Belts,
Inc., is studying absenteeism among his employees.
His workforce is small, consisting of only five
employees. For the last three years he recorded the
following number of employee absences, in days, for
each quarter.

Determine a typical seasonal index for each of the Determine a typical seasonal index for each of the
four quarters. four quarters.

Q2. An investigation into the sales of burgers per day Q2. An investigation into the sales of burgers per day
in the following random cities has supplied the in the following random cities has supplied the
following data: following data:
Towns Burgers / day (Q) Price (P) in Rs. Towns Burgers / day (Q) Price (P) in Rs.
1 100 15 1 100 15
2 90 18 2 90 18
3 85 19 3 85 19
4 110 14 4 110 14
5 120 13 5 120 13
6 90 19 6 90 19
7 105 16 7 105 16
8 100 14 8 100 14
Use simple regression analysis, estimate demand as a Use simple regression analysis, estimate demand as a
linear function of price. From the equation, calculate linear function of price. From the equation, calculate
the point price elasticity of demand at the mean the point price elasticity of demand at the mean
values of the variables. values of the variables.

Q3. The table below shows the demand for a
particular brand of razor in a shop for last 9 months.
Month 1 2 3 4 5 6 7 8 9
Demand 10 12 12 17 15 19 20 21 20
i) Calculate a 3 month moving average for months
three to nine. What would be your forecast for the
demand in month ten?
ii) Apply exponential smoothing with a smoothing
constant of 0.3 to derive a forecast for the demand in
month ten.
Q3. The table below shows the demand for a
particular brand of razor in a shop for last 9 months.
Month 1 2 3 4 5 6 7 8 9
Demand 10 12 12 17 15 19 20 21 20
i) Calculate a three month moving average for months
three to nine. What would be your forecast for the
demand in month ten?
ii) Apply exponential smoothing with a smoothing
constant of 0.3 to derive a forecast for the demand in
month ten.