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Forecasting, Regression

1)
Alternative Good Market Fair Market Poor Market
Single unit 25000 20000 -45000
Duplex 80000 30000 -10000
Triplex 100000 90000 -9000
Quadraplex 150000 50000 -40000
Probability 0.4 0.35 0.25

What is the best decision based on the following table

Single unit
Duplex
Triplex
Quadraplex

2) the following forecasting model has been developed:
Y=36+4.3X

where

y= deman for air conditioners
Xi= outside temperature

What is the demand for air conditioners when the temperature is 70 degrees
a 360
b 403
c 66
d 337

3) Bus and subway ridership is believed to be related to the number of tourists. These are the data for the past 12 years

Year # of tourists in 100,000s ridership in 1,000,000s
1 7 15
2 2 10
3 6 13
4 4 15
5 14 25
6 15 27
7 16 24
8 12 20
9 14 27
10 20 44
11 15 34
12 7 17

The regression model that reflects the relationship of the tourists to ridership is:
a Y=8,0+17.5x
b Y=7.2+2.1x
c Y=5.060+1.593x
d none of the above

4) For the problem above, what is the expected ridership if 10 million tourists visit the city?
a 5.06 million
b 2.1 million
c 23 million
d 20.99 million

Please see the attached file.
Please note: The question in the attached file related to ipod has not been answerd as the question does not have complete data.

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Please see attached file.

1) Alternative Good Market Fair Market Poor Market
Single unit 25000 20000 -45000
Duplex 80000 30000 -10000
Triplex 100000 90000 -9000
Quadraplex 150000 50000 -40000
Probability 0.4 0.35 0.25

What is the best decision based on the following table

Single unit
Duplex
Triplex
Quadraplex

Answer: Triplex

We calculate the expected value for each alternative.
The alternative for which the expected value is the maximum is the best decision
Expected value = sum of probability of state x value for state

Alternative Expected value
Single ...

Solution Summary

Answers multiple choice questions on Forecasting, Regression.

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