Homework Answers
The expected trend equation as prior to 3 years = 3457.5x - 208.3
Number of quarters in three years = 12
Hence the value of x for the fourth year quarter 1 = 13
Hence the value of x for the fourth year quarter 2 = 14
Hence the value of x for the fourth year quarter 3 = 15
Hence the value of x for the fourth year quarter 4 = 16
Now the value of the deseasonalized demand for fourth year quarter 4, when x = 16 = 3457.5 * 16 - 208.30 = 55511.70
Now to expected demand for the fourth year quarter 4 = Deseasonalized demand for fourth year quarter 4 * Seasonality factor for the quarter 4
= 55511.70*0.33 = 18186.9 = 18,187 (rounding off to the nearest whole number)
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