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BSOP-330 Week 2 iLab

Chapter Four Problems 4.23, 4.27, 4.33, and 4.35

Chapter Four Problems 4.23, 4.27, 4.33, and 4.35.


a) Compute MAD and MAPE for management’s technique.

b) Do management’s results outperform (i.e., have smaller MAD and MAPE than) a naive forecast?

c) Which forecast do you recommend, based on lower forecast error?


“Solution available”


a) Forecast the number of transistors to be made next year, using linear regression.

b) Compute the mean squared error (MSE) when using linear regression.

c) Compute the mean absolute percent error (MAPE).


a) Use the model to predict the selling price of a house that is 1,860 square feet.

b) A 1,860-square-foot house recently sold for $95,000. Explain why this is not what the model predicted.

c) If you were going to use multiple regression to develop such a model, what other quantitative variables might you include?

d) What is the value of the coefficient of determination in this problem?

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