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Practice Forecast Problems
Practice Forecast Problems
LINEAR REGRESSION
Q.1. An ice-cream manufacturer has been observing the results of ice-cream sales
over the last 10 weeks during summer and have noticed how sales vary as the
average weekly daytime temperature in summer goes up and down. The results are
as follows:
Week
1
2
3
4
5
6
7
8
9
10
Temperature (Fahrenheit)
73
65
81
90
75
77
82
93
86
79
(a) Develop a Linear Regression Model for this data and forecast the ice
cream consumption if the average weekly daytime temperature is
expected to be 85 degrees next week.
(b) If Alpha=0.3 and Beta = 0.4, using exponential smoothing technique, recalculate the forecast for next week.