ps//newconnect.n flow/connect htm mework Help Save& ExitSubmit The following equ

Question

ps//newconnect.n flow/connect htm mework Help Save& ExitSubmit The following equation summarizes the trend portion of quarterly sales of condominiums over a long cycle. Sales also exhibit seasonal Fe 69-5.9t 4.92 where Ft = Unit Sales r O at the first quarter of last year 1.15 .65 1.48 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.)

Explanation / Answer

The final forecast will be equal to

F=Trend*Seasonality, where,

Trend is represented by Ft and seasonality by seasonal indices.

Relative weights of the quarters is to be divided by the average of relative weights to determine the seasonal index corresponding to each quarter.

Avg of relative weights=(1.15+1.1+0.65+1.4)/4=1.075

Quarterly seasonal indices will be given by the following table:-

The trend based forecasts will be correspondingly multiplied by seasonal index and whole will be divided by 4 to calculate the forecast. (starting from t=4 for next year Q1). The values are tabulated.

Quarter Rel. Wt. Seasonal Index 1 1.15 1.07 2 1.1 1.02 3 0.65 0.6 4 1.4 1.3

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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