Question
Question 7 The Accuweather Corporation manufactures barometers and thermometers for weather forecasters. In an attempt to forecast its future needs for mercury, Accuweather's chief economist
Question 7
The Accuweather Corporation manufactures barometers and thermometers for weather forecasters. In an attempt to forecast its future needs for mercury, Accuweather's chief economist estimated average monthly mercury needs as:
N = 500 + 10X
where N = monthly mercury needs (units) and X = time period in months (January 2020= 0). The following monthly seasonal adjustment factors have been estimated using data from the past five years:
Month Adjustment Factor
January 15%
April 10%
July -20%
September 5%
December -10%
(a)Forecast Accuweather's mercury needs for January, April, July, September, and December of 2022.
(b)The following actual and forecast values of mercury needs in the month of November have been recorded:
Year Actual Forecast
2021 456 480
2020 324 360
2019 240 240
What seasonal adjustment factor should the rm use for November?
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