Lesson 11: Index Numbers

October 25, 2015

Mon, Oct 26

Review:

Presentation:

  • Exam 2 Solutions
    • Regression Model
    • Executive Summary
    • Forecasts
    • Error Measurements
    • Multicollinearity
    • Additional Data Elements
    • Accuracy
  • Index Numbers
    • How to calculate, create
    • Use in Regression (N-dex)
    • Use in Time Series (HPI)

Activity:

  • Problems 15.21 and 15.22 on p. 642-643

Assignment:

  • Generate an index variable
    • Replace Bedrooms and Bathrooms with 1 index variable
    • Replace Neighborhoods (all Binary variables) with 1 index variable
    • Use HPI to adjust real estate sales forecasts for inflation (or deflation)
  • Rerun and post regression output
  • Identify and Correct Exam 2 Mistakes [Optional]

Justin

Justin Holman is CEO of Aftermarket Analytics, where he leads efforts to develop cutting edge sales forecasting and inventory optimization technology for the Automotive Aftermarket. Prior to joining Aftermarket Analytics, Justin managed corporate consulting for the Strategy & Analytics division at MapInfo Corporation, leading major projects for retail clients including The Home Depot, Darden Restaurants, Bridgestone-Firestone, Sainsbury’s and New York & Company. Before that, Justin served as Vice President of Software Development at LogicTools, now part of IBM's supply chain application software group. Justin holds a B.A. from Claremont McKenna College, a Ph.D. from the University of Oregon and an Executive Management certificate from Northwestern University's Kellogg School of Management.

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