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A manager of a store that sells and installs spas wants to make forecast for January, February, and March of next year. Her forecasts are

A manager of a store that sells and installs spas wants to make forecast for January, February, and March of next year. Her forecasts are a combination of trend and seasonality. She uses the following equation to estimate the trend component of monthly demand: Ft = 100 + 2t, where t = 0 in June of last year. Seasonal relatives are 1.13 for January, 1.07 for February, and .92 for March. What demands should she predict?

Month Forecast

January of the next year

February of the next year

March of the next year

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