- Regression analysis is an extremely valuable quantitative tool. Briefly discuss the following using a real world example:
– How the coefficient of determination and the correlation coefficient are related and how they are used in regression analysis.
– How scatter diagrams can be used to identify the type of regression to use.
– The methods used to determine if the regression model is a good model for the presented dependent and independent variable(s).
No forecasting method is perfect under all conditions. Briefly describe the steps used to develop a forecasting system. What is the difference between a causal model and a time-series model? What is a qualitative forecasting model, and when is it appropriate. Provide a real world example of each type of qualitative forecasting model. (50 points)
- We discussed the fundamentals of inventory control theory. The two key takeaways are 1) how much to order and 2) when to order. Discuss the following aspects of inventory control models:
- Why inventory is an important consideration for managers
- The purpose of inventory control
- Why would not a company always store large quantities of inventory to eliminate shortages and stock outs?
- Under what circumstances can inventory be used as a hedge against inflation?
Explain the purpose of ABC analysis.