Mayfairs insurance company proposed a settlement based on, Ask an Expert

Statistics

The Mayfair Department Store in Davenport, Iowa is trying to determine the amount of sales lost while it was shut down during July and August because of damage caused by the Mississippi River flood. Sales data for January through June follow.

Sales ($1000s)

January 185.72
February 167.84
March 205.11
April 210.36
May 255.57
June 261.19

a. Use exponential smoothing, with a = .4, to develop a forecast for July and August. (Hint: Use the forecast for July as the actual sales in July in developing the August forecast.) Comment on the use of exponential smoothing for forecasts more than one period into the future.

b. Use trend projection to forecast sales for July and August.

c. Mayfair's insurance company proposed a settlement based on lost sales of $240,000 in July and August. Is this amount fair? If not, what amount would you recommend as a counteroffer?

View complete question

Statistics and Probability, Statistics

Category:- Statistics and Probability
Reference No.:- M9119016

Have any Question?Write your Review or question?

Related Questions in Statistics and Probability

What is the sample size for studies with moe of -35 and -28

What is the sample size for studies with MOE of +/-3.5% and +/-2.8%?, with a confidence level of 95%, sample statistics of .50? Please show work.

A city of flies has a population that doubles once every

A city of flies has a population that doubles once every day. The flies go extinct from overpopulation on the 30th day. On which day was the fly population halfway from extinction?

Star corp is considering investing in new equipment to

Star Corp. is considering investing in new equipment to serve more customers. You have been asked to determine the required return of Star Corp's common equity, assuming that the firm will raise new equity financing to f ...

Sixty-seven percent of adults have looked at their credit

Sixty-seven percent of adults have looked at their credit score in the past six months. If you select 31 customers, what is the probability that at least 20 of them have looked at their score in the past six months?

Why has libor played such a central role in international

Why has LIBOR played such a central role in international business and financial contracts? Why has this been questioned in recent debates over its value reported?

Suppose you just purchased a digital music player and have

Suppose you just purchased a digital music player and have put 9 tracks on it. After listening to them you decide that you like of the songs. With the random feature on your? player, each of the 9 songs is played once in ...

A representative from your company visited a prison and

A representative from your company visited a prison and sampled 500 prisoners in Kailil , concluding that 90 of them are political prisoners. the Test hypothesis, at the 5% significance level, that one third of the priso ...

Useby using we need write the Useby using we need write the answer

Useby using we need write the answer download.file("http://www.openintro.org/stat/data/ames.RData", destfile = "ames.RData") load("ames.RData") area price I need how to Get a sample with a size of 100, and find the sampl ...

Consider a normally distributed set of scores with a mean

Consider a normally distributed set of scores with a mean of 0 and a standard deviation of 5. If a value of 3.25 is sampled from this distribution, what is the corresponding z-score? If necessary, round your answer to tw ...

Show worksuppose that you have just purchased a share of

Show Work Suppose that you have just purchased a share of stock for $23. The most recent dividend was $1.5 and dividends are expected to grow at a rate of 7% indefinitely. What must your required return be on the stock?

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Statistics and Probability Expert