Question 8 Suppose the following are the seasonal indices for the first three qu

Question

Question 8 Suppose the following are the seasonal indices for the first three quarter of the year for a quarterly sales. Quarter seasonal index Q1 71.3 Q2 89.4 Q3 108.9 Remember that the seasonal indices should average 100 so you should be able to infer the seasonal index for Q4. /Furthermore, suppose that the estimated coefficients from a regression of the deseasonalized series on Time are given below. Intercept 2885 Time 61.4 What is the forecast for period 102, if period 102 is Q3. Answer is 9962.0 but i have no idea how to get the answer.

Explanation / Answer

for period 102 deseasonalied predicted value =a+bt =2885+61.4*102=9147.8

hence seasonalized predicted value =Q3 seasonal index*deseasonalized predicted value =9147.8*108.9/100

=9962.0

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

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