A linear equation for the trend in demand data was found to be Yr = 1,524 + 5.2X, where X is the number of the month as designated in the table that follows.

a. Project the trend values for each month and determine the multiplicative index for each of the 24 months.

b. Determine the additive index for each of the 24 months.

c. Is it obvious whether an additive or multiplicative model is more appropriate?

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MONTH MONTH NUMBER Year I Year 2 ACTUAL MONTH ACTUAL DEMAND NUMBER DEMAND January 1 1,419 13 1,495 February 2 1,341 14 1,390 March 3 1,275 15 1,319 April 4 1,353 16 1,420 May 5 1,438 17 1,506 June 6 1,547 18 1,627 July 7 1,688 19 1,719 August 8 1,755 20 1,802 September 9 1,862 21 1,921 October 10 1,782 22 1,851 November 11 1,670 23 1,736 December 12 1,576 24 1,659