I have two problems about demand and forecasting that I need the solutions, explanations, and work shown for. How much would it be for that?Document Preview:I have two problems about demand and forecasting that I need the solutions, explanations, and work shown for. Pg. 168 1 The forecasting staff for the Prizer Corporation has developed a model to predict sales of its air-conditioned-ride snowmobiles. The model specifies that sales S vary jointly with disposable personal income Y and the population between ages 15 and 40, Z, and inversely with the price of the snowmobiles P. Based on past data, the best estimate of this relationship is: YZ S=k P Where k has been estimated (with past data) to equal 100. If Y=$11,000, Z=$1,200, and P=$20,000, what value would you predict for S? What happens if P is reduced to $17,500? How would you go about developing a value for k? What are the potential weaknesses of this model? Pg. 171 8 Bell Greenhouses has estimated its monthly demand for potting soil to be the following: N=400 + 4X Where N = monthly demand for bags of potting soil X = time periods in months (March 2006 = 0) Assume this trend factor is expected to remain stable in the foreseeable future. The following table contains the monthly seasonal adjustment factors, which have been estimated using actual sales data from the past five years. Month Adjustment Factor March +2% June +15% August +10% December -12% Forecast Bell Greenhouses demand for potting soil in March, June, and August, and December 2007. If the following table shows the forecasted and actual potting soil sales by Bell Greenhouses for April in five different years, determine the seasonal adjustment factor to be used in making an April 2008 forecast. Year Forecast Actual 2007 500 515 2006 452 438 2005 404 420 2004 356 380 2003 308 320 X = time periods in months (March 2006 = 0) Assume this trend factor is expected to remain stable in the foreseeable future. The following Attachments: wk.-3-for-tra.doc