Question

2. The table below shows (1) sales forecasts for the respective quarters before adjusting for seasonality, and (2) the seasonal indices for each of the four quarters. Adjust these sales forecasts for seasonality and put the final (adjusted) forecasts in the table. Quarter 1 2 3 4 Sales forecast 400 400 400 400 Seasonal Index 1.2 0.8 0.7 1.3 Adjusted Forecast

Answer 1

Quarter	Sales Forecast	Seasonal Index	Adjusted forecast
1	$           400	1.2	$           480
2	$           400	0.8	$           320
3	$           400	0.7	$           280
4	$           400	1.3	$           520
	$        1,600		$        1,600
Adjusted forecast=Sales forecast * Seasonal index