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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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