Author Question: One of the ways to use the Bass forecasting model is to wait until several periods of data for the ... (Read 20 times)

oliviahorn72 · **on:** Jun 24, 2018

One of the ways to use the Bass forecasting model is to wait until several periods of data for the problem under consideration are available. This is known as the ___________ approach.
a. branch-and-bound
b. cutting plane
c. rolling-horizon
d. sensible-period

Question 2

The multiple regression model represents pricing for residential housing in a certain market. Predicted Price = 19,856.56 + 6,985.25 bedrooms + 87.53 square foot. A house in the local market has 5 bedrooms and 3,200 square feet of living area. Use the multiple regression model to determine the price and the residual if the house sells for 352,200.

aliotak · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

c
RATIONALE: One of the ways to use the Bass forecasting model is to wait until several periods of data for the problem under consideration are available. This is known as the rolling-horizon approach.

Answer to Question 2

predicted price = 334,879, error = 17,321
RATIONALE: Predicted Price = 19,856.56 + 6,985.25 bedrooms + 87.53 square foot = 19,856.56 + 6,985.25(5) + 87.53(3200) = 334,878.81 . Residual error = actual predicted = 334,879 352,200 = 17,321.