The following are a company’s quarterly demand figures for the past 2 years.

(a) Compute l-year moving averages centered at the end of quarters 2.5 through 6.5, respectively, to remove the seasonality (i.e., assume the demand figures are at the center of the time periods they include).

(b) Compute a linear regression equation for the trend through the five moving averages.

(c) Compute an average seasonal index (multiplicative) for each quarter of the year.

(d) Forecast the demand for each quarter of year 3.

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QUARTER Year I 1234 Year 2 DEMAND QUARTER 26,209 21,402 18,677 24,681 1234 DEMAND 25,390 19,064. 18,173 23,866