Question

The trend forecast equation is Ŷ = 120 + 100t. The next forecast is for period...

The trend forecast equation is Ŷ = 120 + 100t. The next forecast is for period 8. The typical seasonal index for period 8 is 0.80. What are the forecast sales for period 8?

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SOLUTION:

From given data,

The trend forecast equation is Ŷ = 120 + 100t. The next forecast is for period 8. The typical seasonal index for period 8 is 0.80. What are the forecast sales for period 8

The trend forecast equation is ,

Ŷ = 120 + 100t.

To find  forecast sales for period 8.

That is to find Ŷ for t = 8 using above equation.

Therefore,

Ŷ = 120 + 100t.

Ŷ = 120 + 100*(8)

Ŷ = 120 + 800

Ŷ = 920

After making adjustment for seasonal index,

Sales for period 8

=920(0.80)

Sales for period 8 =736
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The following data is given: August trend forecast                         = 600 units Actual sales in August   &nb
The following data is given: August trend forecast                         = 600 units Actual sales in August                       = 370 units Actual sales in September                  = 700 units Actual sales in October                      = 665 units Seasonal index for August                 = 0.9 Seasonal index for Septemeber          = 1.2 Seasonal index for October                = 1.1 Seasonal index for Novermber          = 0.8 Smoothing Constant, α                      = 0.2 Use simple exponential smoothing to find the forecast (seasonalized) for November.
Given an actual demand this period of 8, a (smoothed) forecast average for this period of...
Given an actual demand this period of 8, a (smoothed) forecast average for this period of 9, and a (smoothed) trend of 4, what is the Forecast Including Trend (FIT) for next period? Use alpha = 0.15 and beta = 0.25. If necessary, round your answer to two (2) decimal places.
The following equation summarizes the trend portion of quarterly sales of condominiums over a long cycle....
The following equation summarizes the trend portion of quarterly sales of condominiums over a long cycle. Sales also exhibit seasonal variations. Ft = 52 − 4.2t + 3.2t 2    where Ft = Unit sales t = 0 at the first quarter of last year Quarter Relative 1 1.00 2 1.00 3 .50 4 1.50 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...
Problem 3-12 The following equation summarizes the trend portion of quarterly sales of condominiums over a...
Problem 3-12 The following equation summarizes the trend portion of quarterly sales of condominiums over a long cycle. Sales also exhibit seasonal variations. Ft = 62 − 5.2t + 4.2t 2    where Ft = Unit sales t = 0 at the first quarter of last year Quarter Relative 1 1.15 2 1.00 3 .65 4 1.30 Using the information given, prepare a forecast of sales for each quarter of next year (not this year), and the first quarter of...
Demand for Y is shown in the table. Develop a forecast using a trend line. What...
Demand for Y is shown in the table. Develop a forecast using a trend line. What is the forecast for period 10? Period Y 1 28 2 42 3 49 4 74 5 78 6 93 7 115 8 129
Consider the following time series. Given: Period:1,2,3,4,5,6,7,8 Demand: 7,9,8, 10,13,14,12,15 a) Using a trend projection, forecast...
Consider the following time series. Given: Period:1,2,3,4,5,6,7,8 Demand: 7,9,8, 10,13,14,12,15 a) Using a trend projection, forecast the demand for Period 9. b) Calculate the MAD for this forecast.
A manager of a store that sells and installs spas wants to prepare a forecast for...
A manager of a store that sells and installs spas wants to prepare a forecast for January, February, and March of next year. Her forecasts are a combination of trend and seasonality. She uses the following equation to estimate the trend component of monthly demand: Ft = 80 + 3t, where t = 0 in June of last year. Seasonal relatives are .87 for January, 1.05 for February, and 1.05 for March. What demands should she predict? (Round your answers...
Find the seasonalized forecast for Q2 of 2017.The sales trend has been modeled as: Sales =...
Find the seasonalized forecast for Q2 of 2017.The sales trend has been modeled as: Sales = 2 * t + 200, where t= time in quarters, beginning in Q1 2014. Seasonality for the four quarterly periods is given in the table below. Quarter Seasonal Factor Quarter #1 1.2000 Quarter #2 1.41 Quarter #3 0.5000 Quarter #4
A quadratic trend equation yt = 900 + 30t - 2.5t2 was fitted to a company's...
A quadratic trend equation yt = 900 + 30t - 2.5t2 was fitted to a company's sales. This result implies that the sales trend: hit a maximum in period t = 30. hit a minimum in period t = 5. hit a minimum in period t = 6. hit a maximum in period t = 6.
The following table shows the past two years of quarterly sales information. Assume that there are...
The following table shows the past two years of quarterly sales information. Assume that there are both trend and seasonal factors and that the seasonal cycle is one year. QUARTER SALES QUARTER SALES 1 218 5 162 2 238 6 190 3 209 7 156 4 176 8 141 Use regression and seasonal indexes to forecast quarterly sales for the next year. (Do not round intermediate calculations. Round your answers to the nearest whole number.) The following table shows the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT