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Problems: 4, 12, and 13.
Discussion Question 1:
a) What is forecasting? Why is it so important in the
management of business firms and other enterprises?
b) What are the different types of forecasting?
c) How can the firm determine the most suitable forecasting
method to use?
Discussion Question 7:
a) Which type of smoothing technique is generally better?
b) How do we determine which of two smoothing techniques
is better?
c) How can we forecast the values of a time series that
contains a secular trend as well as strong seasonal and
random variations?
Discussion Question 15: Explain why it is still useful to
pursue forecasting even though it is often off the market by
wide margins
Problem 7: The following table represents data on three
leading indicators for a three-month period. Construct the
composite index (with each indicator assigned equal weight)
and the diffusion index.