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"index adjusted" sales forecast

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An economist had estimated the sales trend line for the Sun Belt Toy Company as follows:

S = 43.6 + 0.8t

S represents Sun Belt's monthly sales (in millions of dollars), and t = 1 in January 2000.
t

The monthly seasonal indexes are as follows:

January 60 April 110 July 90 October 110
February 70 May 110 August 80 November 140
March 85 June 100 September 95 December 150

Forecast monthly sales for the year 2005.

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Solution Summary

Forecast monthly sales is achieved.

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