10) Spencer Boudreau owns a company that manufactures sailboats: Actual demand f
ID: 380848 • Letter: 1
Question
10) Spencer Boudreau owns a company that manufactures sailboats: Actual demand for Spencer's sailboats during each of the past two years was as follows. SEASON Year Winter 1,500 3,400 1850 1,000 2,500 3,000 Summer Fall 2,200 Spencer has forecasted that annual demand for his sailboats in year 3 will equal 10,800 sailboats. Based on this data and the multiplicative seasonal model, what will the demand level be for Spencer's sailboats in the spring of year 3? 10) A) 2700 B) 2349 C) 3756 D) 2816 E) 1879Explanation / Answer
Season Demand Year Seasonality coefficient Winter 1500 1 0.774193548 Spring 3400 1 1.75483871 Summer 1850 1 0.95483871 Fall 1000 1 0.516129032 Winter 2500 2 0.938967136 Spring 3000 2 1.126760563 Summer 2950 2 1.107981221 Fall 2200 2 0.82629108 Seasonality indeces for each season - calculated by taking average of all winter seasonality coefficient Winter 0.85658 Spring 1.4408 Summer 1.03141 Fall 0.67121 Total demand for year 3 10800 Winter 2,312.77 Spring 3,890.16 Summer 2,784.81 Fall 1,812.27 So the demand will be somewhere close to 3756
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.