Question

In: Operations Management

This data is for forecasting future sale considering additive seasonality approach and answer related questions. Time...

This data is for forecasting future sale considering additive seasonality approach and answer related questions.

Time

Year

Season

Sale

1

2018

Q1

1

2

Q2

7

3

Q3

3

4

Q4

2

5

2019

Q1

6

6

Q2

8

7

Q3

1

8

Q4

9

PART a) What is the seasonality index for second season (Q2) ?

Part b)   

Assume that we run the regression for the deseasonalized data after calculating seasonality index . We find that regression line slope is 0.4 , and intercept is 2.8. By considering the slope and intercept, what is your final forecast for second season of 2020 by considering both trend and seasonality?

Part c)

Slope = 0.4, intercept =2.8 for deseasonalized data, what is the absolute error of second season of 2018?

Solutions

Expert Solution

Before answering the specific questions, let us have an insight about Forecasting based on Seasonality Trends:

Using above mentioned concepts, let us try to solve the given question:

Answering the specific questions asked in the problem:

keosha answered 9 months ago
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