SavingsMart (a chain of discount department stores) sells patio and lawn furniture. Sales are seasonal, with higher sales during the spring and summer quarters and lower sales during the fall and winter quarters. The company developed the following quarterly sales forecasting model: Yˆt=9.50+0.600t−2.75D1t+0.25D2t+3.5D3tY^t=9.50+0.600t−2.75D1t+0.25D2t+3.5D3t where
Forecast SavingsMart's sales of patio and lawn furniture for each quarter of 2020.

As per linear model forecasting concept , by use of given equation
Value of t for fourth quarter 2012 = 0 , 1st quarter 2013 = 1 , the series of value changes as +1,
value of t at 1st quarter 2020 = 29
value of t at 2nd quarter 2020 = 30
value of t at 3rd quarter 2020 = 31
value of t at 4th quarter 2020 = 32
1 st Quarter 2020  t=29  Yt = 29*6+ 9.5 2.75  17.4  
D1=1  26.9  24.15  
D2=0  Option 1  
D3=0  
2nd Quarter 2020  t=30  Yt = 30*6+ 9.5 +0.25  18  
D1=0  27.5  27.75  
D2=1  Option C  
D3=0  
3rd Quarter 2020  t=31  Yt = 31*6+ 9.5 +3.5  18.6  
D1=0  28.1  31.6  
D2=0  Option A  
D3=1  
4th Quarter 2020  t=32  Yt = 31*6+ 9.5  19.2  
D1=0  28.7  28.7  
D2=0  Option A  
D3=0 
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