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Savings-Mart (a chain of discount department stores) sells patio and lawn furniture. Sales are seasonal, with lower sales during the spring and summer quarters and

Savings-Mart (a chain of discount department stores) sells patio and lawn furniture. Sales are seasonal, with lower sales during the spring and summer quarters and higher sales during the fall and winter quarters. The company developed the following quarterly sales forecasting model:

= 7.5+ 1t 3.25D1t + 2D2t + 2.75D3t

Where t = predicted sales ($ million) in quarter t; 7.5 = quarterly sales ($ million) when t = 0 t = time period (quarter) where fourth quarter of 2002 = 0, first quarter of 2003 = 1, second quarter of 2003 = 2, etc...

D1t = {1 for first-quarter observations

0 otherwise.

D2t = {1 for second-quarter observations

0 otherwise.

D3t = {1 for third-quarter observations

0 otherwise.

Forecast Savings-Marts sales of patio and lawn furniture for each quarter of 2013.

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