Question

The following equation summarizes the trend portion of quarterly sales of condominiums over a long cycle. Sales also exhibit seasonal variations.

F_t = 62 − 5.2t + 4.2t ²
  
where
F_t = Unit sales
t = 0 at the first quarter of last year

Quarter	Relative
1	1.15
2	1.00
3	.65
4	1.20

Using the information given, prepare a forecast of sales for each quarter of next year (not this year), and the first quarter of the year following that. (Round intermediate calculations and final answers to 2 decimal places.)
  

Quarter	Forecast
1
2
3
4
1

Answer 1

Answer:

Quarter	relative, r	Forecast using, Ft= 62-5.2t + 4.2t^2
1	1.15	61.00
2	1	68.40
3	0.65	84.20
4	1.2	108.40

Now multiply Ft and relative factor (r)

Quarter	relative, r	Forecast using, Ft= 62-5.2t + 4.2t^2	Forecast with relative index= Ft*r
1	1.15	61.00	70.15
2	1	68.40	68.4
3	0.65	84.20	54.73
4	1.2	108.40	130.08