Business Finance Homework Help

1. From the data base for the company sales during the last six years were shown in the table below, so calculate the following parameters for forecasting the sales for next year (2021).

Period Actual (Years) (sales)

Forecast (sales)

2015 1550 1670

2016 1940 2070

2017 2123 2543

2028 2400 3100

2019 2812 3320

2020 3511 4000

a) The Error (difference between actual value and predicted value) for the previous (6) years according to following:

i. Mean Absolute Deviation (MAD)

ii. Mean Squared Error (MSE)

iii. Mean Absolute Percent Error (MAPE)

b) The forecast of the seventh year (2021) according to the following techniques:

i. Simple Moving Average.

ii. Weighted Moving Average by assuming the weights (3.0,2.5,2.0,1.5,1.0, 0.5)

iii. Exponential Smoothing by assuming (α = 0.2)

iv. Linear Trend

2. From the data base for the company sales during the last year, which was shown in the table below, so calculate the productivity accordingly.

a)

b)

Produced Units 9000

Single factor productivity for the last year for each parameter (labor, materials & overhead).

Multifactor productivity for the last year (Factors).

Sales SR/unit 2.5

Labor Cost (SR) 1200

Materials Cost (SR)

800

Overhead Cost (SR) 4000