2 We are predicting quarterly sales for soda at Gordon’s Liquor Store using Winter’s method. We are given the following information:

Seasonality factors: fall  0.8 spring  1.2 winter  0.7 summer  1.3 Current base estimate  400 cases per quarter Current trend estimate  40 cases per quarter a  0.2 b  0.3 g  0.5 Now sales of 650 cases during the summer quarter are observed.

a Use this information to update the estimates of base, trend, and seasonality.

b After observing the summer demand, forecast demand for the fall quarter and the winter quarter.