Question

Consider the quarterly production data (in thousands of units) for the XYZ manufacturing company below. The normalized (adjusted) seasonal factors are winter = .9982, spring = .9263, summer = 1.139, and fall = .9365.

Based on the following deseasonalized observations (dt), a trend line was estimated. The linear regression trend equation is trt = 10.1 + 1.91t. Use the forecasting equation and calculate the forecasted demand for the fall quarter of 1998 and summer quarter of 2000.

Answer

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