Question 3 (0.75 points) The following linear trend equation is used to predict quarterly demand: Y1...

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Question

Question 3 (0.75 points) The following linear trend equation is used to predict quarterly demand: Y1 = 300 - 2t, where t= 1 i

Answer 1

Answer #1

Quarterly demand is given by below equation:

Yt = 300 - 2t

t = 1, for first quarter of FY2020

For second quarter of FY2021, t = 6

Hence, Y6 = 300 - 2*6 = 288

Now, quarterly seasonal index for quarter 2, S2 = 1.6

Seasonally adjusted forecast for quarter 2 of FY2021 = Quarterly demand*Seasonal index for second quarter = 1.6*288 = 460.8

Hence, seasonally adjusted forecast for quarter 2 of FY2021 is 460.8.

Answer 2

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