Question

The following trend projection is used to predict quarterly demand: y-hat = 250 - 2.5x, where x = 1 in the first quarter. Seasonal (quarterly) indices are Quarter 1 = 1.5; Quarter 2 = 0.8; Quarter 3 = 1.1; and Quarter 4 = 0.6. What is the seasonally adjusted forecast for the next four quarters?

Answer

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