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Equation to determine which forecasts are appropriate for specific quarters.

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A manager is using the equation below to forecast quarterly demand for a product:

Yt = 6,000 + 80t where t = 0 at Q2 of last year Quarter relatives are Q1 = .6, Q2 = 0.9, Q3 = 1.3, and Q4 = 1.2.

What forecasts are appropriate for the last quarter of this year and the first quarter of next year?

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Solution Summary

The solution interprets the formula, schedules the quarters and arrives at forecasts for the last and first quarter of next year.

Solution Preview

The equation is Yt = 6,000 + 80t. This looks like a time series with a trend (80t) and seasonality ...

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