Question
1.Savings-Mart (a chain of discount department stores) sells patio and lawn furniture. Sales are seasonal, with higher sales during the spring and summer quarters and
1.Savings-Mart (a chain of discount department stores) sells patio and lawn furniture. Sales are seasonal, with higher sales during the spring and summer quarters and lower sales during the fall and winter quarters.The company developed the following quarterly sales forecasting model:
(Y_t ) =8.25+0.125time-2.75FirstQ+1.50SecondQ+6.50ThirdQ
where Y hat = predicted sales ($million) in quarter t
time = time period (quarter),
Note: time = 0 for 4th Quarter 2000
time = 1 for 1st Quarter 2001
time = 2 for 2nd Quarter 2001
FirstQ = 1 if observation in First Quarter; 0 otherwise
SecondQ = 1 for Second Quarter; 0 otherwise
ThirdQ = 1 for Third Quarter; 0 otherwise
QUESTION: Forecast Savings-Mart's sales of patio and lawn furniture for each quarter of 2002.
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