Explain how Charter Communications, a broadband company, uses one or more forecasting methods (e.g., seasonal, Delphi, technological, time series), to forecast demand under conditions of uncertainty.© BrainMass Inc. brainmass.com October 9, 2019, 5:12 pm ad1c9bdddf
Charter Communications (NASDAQ: CHTR) is a company providing cable television, HDTV, cable telephone and broadband services to many cities in the United States of America.
The various ways of estimating demand are:
1. Historical Sales figures
2. Forecasting current Demand by regeression analysis, trend analysis
3. Estimating Industry growth
4. Estimating Economy's growth
Revenues= No. of expected buyer*quantity purchased by an average buyer*price of an average unit
The various ways of estimating current cost:
1. Historical Cost structure
2. Changes in technology and impact on cost.
3. Changes in the raw material
4. Effect of the changes in the external environment
Total Cost= No. of units * Average cost per unit
Forecasting is an essential tool in any decision making process.
I Time series
Time series is one of the quantitative methods we use to determine patterns in data collected over time. Time series analysis is used to detect pattern of change in statistical information over regular intervals of time. We project these patterns to arrive at estimate for the future. Thus times series helps us cope with uncertainty about the future. There are four kinds of changes in time series analysis:
Secular trend: The value of variable tends to increase or decrease over a long period of time. The steady increase in cost of living recorded by the consumer price index is an example of secular trend.
Cyclical fluctuation: For example business cycle. ...
This explains the forecasting methods (e.g., seasonal, Delphi, technological, time series),