A manager of a store that sells and insta11s hot tubs wants to prepare a forecast for
Question:
A manager of a store that sells and insta11s hot tubs wants to prepare a forecast for the number of hot tubs demanded during January , February, and March of next year. Her forecasts are a combination of trend and seasonality. She uses the following equation to estimate the trend component of monthly demand: yt = 70 + 6t, where t = 0 in June of last year. Seasonal relatives are 1.10 for January, 1.02 for February, and .95 for March. What demands should she forecast?
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y t 70 6t t 0 June of last year t 1 Julyof last year t 7January of this yea...View the full answer
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