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6b. Sales data for Pegasus & Co. for the period January to June 2016 is as follows: 2016 Actual Sales ($,000,000) Seasonally Adjusted Sales ($,000,000)

6b.Sales data for Pegasus & Co. for the period January to June 2016 is as follows:

2016

Actual Sales

($,000,000)

Seasonally Adjusted Sales

($,000,000)

Index
Jan 150 176 85.23
Feb 140 175 80
Mar 130 173 75.14
Apr 120 185 64.86
May 110 183 60.11
Jun 190 158 120.25

  1. The trend equation based on the last 6 months seasonally adjusted data is

Seasonally Adjusted Sales Y = 150 + 10x

Required:

Prepare forecast of actual month sales for next June 2017.

Assume the time value (x) for next June 2017 is 10 and use the seasonal index from last June 2016.

Show your calculation workings.

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