I need a step by step detailed explanation of the following problem. Please incl

Question

I need a step by step detailed explanation of the following problem. Please include each simplified step.

North Dakota Electric Company estimates its demand trend line (in millions of kilowatt hours) to be:

D= 77 +0.43Q

where Q refers to the sequential quarter number and Q=1 for winter of year 1 and year 2. In addition, the multiplicative seasonal factors are as follows:

Quarter

Factor (index)

winter

.8

spring

1.1

summer

1.4

fall

.7

Find the forecast of for the four quarters of year of 25, beginning with winter.

Quarter

Factor (index)

winter

.8

spring

1.1

summer

1.4

fall

.7

Explanation / Answer

For year 25,

Winter:- forecast for 25th year:- 77 + .8Q, whre Q = 25

So, for winter = 77 + .8 * 25 = 95

Spring = 77 + 1.1 * 25 = 104.5

Summer = 77 + 1.4 * 25 = 112

Fall = 77 + 0.7 * 25 = 94.5

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.