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Exhibit 18.7.The following table shows the annual revenues (in millions of dollars)of a pharmaceutical company over the period 1990-2011. The autoregressive models of order 1 and 2,
and
,were applied on the time series to make revenue forecasts.The relevant parts of Excel regression outputs are given below.
Model AR(1): Model AR(2):
Refer to Exhibit 18.7.(Use Regression in Data Analysis of Excel. )Compare the autoregressive models,
and
,through the use of MSE and MAD.Hint.You may compute the errors by clicking "Residuals";to analyze
instead of
,it suffices to click "Constant is Zero".
Value
The importance, worth, or usefulness of something to someone, often measured in terms of monetary, social, or strategic significance.
S.A.V.E. Framework
A marketing concept that focuses on Solution, Access, Value, and Education to better meet customer needs and differentiate from competition.
Marketing Mix
The combination of product, price, promotion, and placement of what a company is offering.
Designer Cookware
High-end kitchenware products that are not only functional but also have a distinctive style or design appeal.
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