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A coastal area tourism council forecasts that beach condo rentals will be 10% higher in Year5 than in Year4 and wants to estimate rentals by
A coastal area tourism council forecasts that beach condo rentals will be 10% higher in Year5 than in Year4 and wants to estimate rentals by quarter. Use the data in the table below and the seasonal decomposition method to answer the questions. Show numerical answers to 1 decimal place.
N A coastal area tourism council forecasts that beach condo rentals will be 10% higher in Year5 than in Year4 and wants to estimate rentals by quarter. Use the data in the table below and the seasonal decomposition method to answer the questions. Show numerical answers to 1 decimal place. Beach Condo Rentals Quarter 1 2 3 4 Total Year1 1484 1796 2330 2262 7872 Year2 1482 1864 2580 2592 8518 Year3 1792 2110 2606 2906 9414 Year4 1902 2218 2972 3200 10292 Total 6660 7988 10488 10960 a Use the data above to construct a seasonal index for each quarter. (10 points) Q1 Q2 Q3 Q4 b Use the forecast of 10% annual growth to predict rentals for each quarter. (15 points) Year5 Q1 Year5 Q2 Year5 Q3 Year5 Q4 If billings decline by 25% from the 4th qtr of Year4 to the 1st qtr of Years is that a signal that rentals are on track to grow by 10% in Year5? (10 points)Step by Step Solution
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