Question

In: Finance

The sales trend has been modeled as: Sales=3.00 * t + 122.00, where t = time in quarters

The sales trend has been modeled as: Sales=3.00 * t + 122.00, where t = time in quarters, beginning in Q1 2015. Seasonality for the four quarterly periods is given in the table below. Find the seasonalized forecast for Q1 of 2017.

Quarter

Seasonal Factor

Quarter #1

1.10

Quarter #2

0.9000

Quarter #3

0.9000

Quarter #4


Answer format: Number: Round to: 1 decimal places.

Solutions

Expert Solution

1.

De-seasonalized forecast for Qtr 1 2017 = 3 * t + 122 = 3*9+122= 149

Seasonalized forecast for Qtr 1 2017 = 149 * SI for Qtr 1 = 149*1.1 = 163.9


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