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Utilizing Statistics in Demand Forcasts

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You have just purchased a small retail shop. You are preparing to order greeting cards. Past sales have been tracked by price point; day of the week; week of the year; and sex, age and zip code of the purchaser. There are definite differences in purchasing patterns for certain holidays. You have data for the past 24 months. What steps might you take to forecast the demand by quarter for the next 12 months?
•Identify the independent and dependent variables
•Identify the forecasting method you would use
•Explain why that is the appropriate tool
•Identify the required calculations (by function, if appropriate)

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Solution Summary

A theoretical question about forecasting methods and tools.

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1. Identify the independent and dependent variables
Yes. Independent variable will be time while sales will be the dependent variable.

2. Identify the forecasting method you would use
In general practice, for a time-series data forecasting, ARIMA (Auto-Regressive Integrated Moving ...

Solution provided by:
Amrit Lal Ahuja, PhD (IP)
Education
  • BEng, Allahabad University, India
  • MSc , Pune University, India
  • PhD (IP), Pune University, India
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