Yt = 560 + 88t
where Yt = Unit sales (000)
t = 0 at the fourth quarter of 2016
a. Using the information given, prepare a forecast of sales for the last quarter of 2017 and the first quarter of 2018.
b. Sales also exhibit seasonal variations (Q1= ?, Q2 = .8, Q3 = .6, Q4 = ?). Seasonally adjusted forecasts for last quarter of 2017 and first quarter of 2018 are 1,368(000) and 1,100(00) respectively. Determine the seasonal relatives for the last quarter of 2017 and the first quarter of 2018.
c. Provide a couple of potential explanations for the seasonal relatives in Q3 and Q4.
These solutions may offer step-by-step problem-solving explanations or good writing examples that include modern styles of formatting and construction of bibliographies out of text citations and references. Students may use these solutions for personal skill-building and practice. Unethical use is strictly forbidden.a. Using the information given, prepare a forecast of sales for the last quarter of 2017 and the first quarter of 2018.
Since Yt = 560 + 88t
Last quarter of 2017 that is t = 4
Yt = 560 + 88*4 = 912
Thus unit sales in the last quarter of 2017 = 912(000)
First Quarter of 2018 means t = 5
then Yt = 560 + 88*5 = 560+440 = 1000(000)...
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