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Southwestern University Case Study 3. Develop a forecasting model, justifying it

ID: 385707 • Letter: S

Question

Southwestern University Case Study

3. Develop a forecasting model, justifying its selection over other techniques, and project attendance through 2017.

, 4.55-4.58 are cr 4.50-4.61 relate to Monitoring and Contralling Forecasts 100 80 4.9 Sales of tablet computers at Ted Ghckman's electron es store in Washington, D.C over the past 10 weeks are shown 104 105 DEMAND WEEK DEMAND 125 120 109 36 Decem 28 37 25 demand for each week. including week 10, using Additional prohlem 4.61 is available in MyOMLab tial smoothing with ,5 (initial forecast-20) What is the value of the tracking signal as of the end of December? 10 CASE STUDIES hired as its head coach in 2009 (in hopes of reaching the elusive number 1 each year incre by 10,000 just with the announcement of Stephenville and SWU were read Southwestern University: (B)* ollege in Stephenville, Texas, enrolls close to 20,000 students. The school is a dominant force in the small city, with more students during fall 20 in college football rankings. Since the legendary Phil Flamm was dance at the five Saturday home games mm's arrival, attendance generally 9.000 per game. Season ticket sales bumped up estern University (SWU), a large state c ranking), attend ased. Prior to Fla and spring than permanent residents. the new coach's arrival. Always a fothall owerhoume, SW U is usually in the top 20 by 000 ith the aount of the new soa Always a football powerhouse, SWU is usually in the top y to move to the big time! Southwestern University Football Game Attendance, 2010-2015 2010 2011 2012 GAME ATTENDEES OPPONENT ATTENDEES OPPONENT ATTENDEES OPPONENT 34.200 Rice 39,800 Texas 38,200 Duke 26,900 Arkansas 35,100 TCU 36,100 Miami 40,200 Nebraska 39,100 Ohio State 25,300 Nevada 36,200 Boise State 35,900 USC 46,500 Texas Tech 43,100 Alaska 27,900 Arizona 39,200 Baylor 2013 2014 2015 ATTENDEES OPPONENT GAME ATTENDEES OPPONENT 41,900 Arkansas 46,100 Missouri 43,900Florida 30,100Central ATTENDEES OPPONENT 42,500 Indian 46,900 LSU 48,200 North Texas 50,100 Texas 33,900 Southern 47,800 Oklahoma 4,200 Texas ABM 45900 South Flonida 45,900 South Florida 36,300 Montana Florida 40,500LSU 49,900 Arizona State " Homecoming games During the fourth week of each season, Stephenville hosted a hugely popular southwestern crafts fes- tival. This event brought tens of thousands of tourists to the town, especially on weekends, and had an obvious negative impact on game attendance

Explanation / Answer

. The time-series forecasting method “Trend projection” will fit in this case. In the trend projection, a trend line to a series of historical data points can be drawn and then we can project the line into the future for medium to long-range forecasts. We can have separate forecasting model or equation for each game. We will have a forecasting equation for each of the game and then we can project the data/line that into the future.

Game 1:

Game 1/Year

Year Ranked

Attendance

x2

y2

xy

2010

1

34200

1

1169640000

34200

2011

2

36100

4

1303210000

72200

2012

3

35900

9

1288810000

107700

2013

4

41900

16

1755610000

167600

2014

5

42500

25

1806250000

212500

2015

6

46900

36

2199610000

281400

x/n

3.50

y/n

39583.33

x2

91

xy

875600

y2

9523130000

B

2534.286

a

30713.333

r ( Correlation Coefficient)

0.959

coefficient of determination (r2)

0.921

Game 2:

Game 1/Year

Year Ranked

Attendance

x2

y2

xy

2010

1

39800

1

1584040000

39800

2011

2

40200

4

1616040000

80400

2012

3

46500

9

2162250000

139500

2013

4

46100

16

2125210000

184400

2014

5

48200

25

2323240000

241000

2015

6

50100

36

2510010000

300600

x/n

3.50

y/n

45150.00

x2

91

xy

985700

y2

12320790000

b

2145.714

a

37640.000

r ( Correlation Coefficient)

0.948

coefficient of determination (r2)

0.899

Game 3:

Game 1/Year

Year Ranked

Attendance

x2

y2

xy

2010

1

38200

1

1459240000

38200

2011

2

39100

4

1528810000

78200

2012

3

43100

9

1857610000

129300

2013

4

43900

16

1927210000

175600

2014

5

44200

25

1953640000

221000

2015

6

45900

36

2106810000

275400

x/n

3.50

y/n

42400.00

x2

91

xy

917700

y2

10833320000

b

1560.000

a

36940.000

r ( Correlation Coefficient)

0.954

coefficient of determination (r2)

0.911

Game 4:

Game 1/Year

Year Ranked

Attendance

x2

y2

xy

2010

1

26900

1

723610000

26900

2011

2

25300

4

640090000

50600

2012

3

27900

9

778410000

83700

2013

4

30100

16

906010000

120400

2014

5

33900

25

1149210000

169500

2015

6

36300

36

1317690000

217800

x/n

3.50

y/n

30066.67

x2

91

xy

668900

y2

5515020000

b

2142.857

a

22566.667

r ( Correlation Coefficient)

0.940

coefficient of determination (r2)

0.883

Game 5:

Game 1/Year

Year Ranked

Attendance

x2

y2

xy

2010

1

35100

1

1232010000

35100

2011

2

36200

4

1310440000

72400

2012

3

39200

9

1536640000

117600

2013

4

40500

16

1640250000

162000

2014

5

47800

25

2284840000

239000

2015

6

49900

36

2490010000

299400

x/n

3.50

y/n

41450.00

x2

91

xy

925500

y2

10494190000

b

3145.714

a

30440.000

r ( Correlation Coefficient)

0.966

coefficient of determination (r2)

                      0.933

Forecasting Model/Equation:

Taking the value of x as 7 for 2016

and 8 for 2017 and thus getting the

value for 2016 and 2017

(y = attendance and x = time)

Forecasting Model/Equation

Game

Model

2010

2011

R2

1

y = 30,713 + 2,534x

48451

50985

0.921

2

y = 37,640 + 2,146x

52662

54808

0.899

3

y = 36,940 + 1,560x

47860

49420

0.911

4

y = 22,567 + 2,143x

37567

39711

0.883

5

y = 30,440 + 3,146x

52462

55608

0.933

Total

239003

250532

(Where y = attendance and x = time)

Game 1/Year

Year Ranked

Attendance

x2

y2

xy

2010

1

34200

1

1169640000

34200

2011

2

36100

4

1303210000

72200

2012

3

35900

9

1288810000

107700

2013

4

41900

16

1755610000

167600

2014

5

42500

25

1806250000

212500

2015

6

46900

36

2199610000

281400

x/n

3.50

y/n

39583.33

x2

91

xy

875600

y2

9523130000

B

2534.286

a

30713.333

r ( Correlation Coefficient)

0.959

coefficient of determination (r2)

0.921

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