Check online Solution ECO404 Managerial Economics Assignment No. 01 Fall 2014

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ECO404 Managerial Economics Assignment No. 01 Solution and Discussion Fall 2014 Due Date: Dec 04, 2014


Allah has bestowed Pakistan with large reserves of minerals and gemstones. Gemstones
are mostly available in Swat, Dir, Mansehra, Kohistan, and Peshawar District.Gemstones
Corporation of Pakistan was established in 1979 to develop the gemstones sector in
Pakistan but this corporation was liquidated in 1997. Nowadays a number of groups are
functioning in this sector. All Pakistan Commercial Exporters Association of Rough &
Unpolished Precious and Semi-Precious Stones (APCEA) is one of them. APCEA buys
gemstones from local collectors and then send to wholesalers all over the country. APCEA
has the data on the number of gemstones (in thousands) ordered during the past twelve
months and wanted to develop forecasting model.You are required to help APCEA in
developing forecasting model. Data is given as follows.
Month
Firm’s Actual
Market Share
(A)
Jan-13 25.6
Feb-13 24.7
Mar-13 21.3
Apr-13 13.9
May-13 12.6
Jun-13 18
Jul-13 21.5
Aug-13 22.3
Sep-13 30.7
Oct-13 15
Nov-13 13.8
Dec-13 22.6
Requirement:
A- Use a three period moving average method to forecast the demand in January of 2014.
Also calculate the RMSE (Root-mean-square error) for this method. Use the table above.
B- Use a five period moving average method to forecast the demand in January of 2014. Also
calculate the RMSE for this method. Use the table above to carry out your calculations.
C-Compare both the methods and tell which one is good for forecasting?

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HERE IS THE SECOND PART OF THE QUESTION . IF ANYONE OF U FIND ANY ERROR DO MENTION BEACUSE ITS MY FINAL ASSIGNMENT. AND I HAVE UPLOADED IT.
SO I CAN COORECT THE ERROR IF THERE IS ANY!
Part (B): demand forecast by using five period moving average methods:
Months
Firm’s actual market share

(A)
Five quarter moving averages
(F)

A-F

(A-F)^2
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