The demand for corn has been increasing over the years. Thus, Illinois Agricultu

Question

The demand for corn has been increasing over the years. Thus, Illinois Agriculture Bureau is interested to forecast the demand for corn and estimated the demand trend line (in millions of bushels) to be: D 77.00.43Q where Q refers to the sequential quarter number and Q = 1 for winter 1986- In addition, the multiplicative seasonal factors are as follows Quarter Winter Spring Summer Fall Factor (Index) 0.72 1.20 1.40 0.68 In the year 2011, the demand forecast for corn for each of the quarters beginning with winter is (round your response to one decimal place) Quarter Winter Spring Energy Use Summer Fall

Explanation / Answer

Between 2011 and 1986 there will be 25 years and hence there will 100 quarters.

In 2011, winter Q = 101

Demand forecast = estimated demand*factor

Winter = 77 + .43Q = 77 + .43*101 = 120.43*.72 = 86.7

Spring = 77 + .43*102 = 120.86*1.2 = 145.032 = 145

Summer = 77 + .43*103 = 121.29*1.4 = 169.8

Fall = 77 + .43*104 = 121.72*.68 = 82.769 = 82.8

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