The ChatCamp Outdoor Company is a catalog sales operation that specializes in outdoor recreational

clothing. Demand for its items is very seasonal, peaking during the Christmas season and

during the spring. It has accumulated the following data for orders per season $($quarter$)$ during the

past $5$ years:

Quarter

Orders $(1,000$s$)/$Year Average

Demad per

Quarter

Seasonal

Index$12345$

Jan$-$Mar $27\mathrm{.}5028\mathrm{.}5037\mathrm{.}5042\mathrm{.}5049\mathrm{.}50$

Apr $-$ Jun $26\mathrm{.}7531\mathrm{.}7534\mathrm{.}7542\mathrm{.}7544\mathrm{.}75$

Jul $-$ Sep $29\mathrm{.}0032\mathrm{.}0041\mathrm{.}0044\mathrm{.}0048\mathrm{.}00$

Oct$-$Dec $27\mathrm{.}2532\mathrm{.}2542\mathrm{.}2547\mathrm{.}2553\mathrm{.}25$

a$.$ Calculate the overall average demad.

b$.$ Calculate the average demad per quarter in the space given in the above table.

c$.$ Calculate the seasonal index in the space given in the above table.

d$.$ Develop a linear trend line $($simple linear regression line$)$ forecast for each of the four seasons season for year $6.$

$($Create a separate table as we did in the Chapter $15$ Assessment, then find the intercept and the slope of the trend line.$)$

Intercept

Time $($Slope$)$

Forecast using trend $($only$)$ Year $6-$ Jan$-$Mar

Year $6-$ Apr $-$ Jun

Year $6-$ Jul $-$ Sep

Tear $6-$ Oct$-$Dec

e$.$ Draw a time$-$series plot with original data and the trend line.

f$.$ Calculate he Mean Squared Error $($MSE$)$ for the trend$-$line$-$only forcast.MSE

g$.$ Projection for quarters $1$ through $4$ of year $6$ using trend and seasonal index.

Year $6-$ Jan$-$Mar $($Trend$*$Seasonal Index$)$:

Year $6-$ Apr $-$ Jun

Year $6-$ Jul $-$ Sep

Tear $6-$ Oct$-$DecProblem $5(20$ Points$)$

The ChatCamp Outdoor Company is a catalog sales operation that specializes in outdoor recreational

clothing. Demand for its items is very seasonal, peaking during the Christmas season and

during the spring. It has accumulated the following data for orders per season $($quarter$)$ during the

past $5$ years:

a$.$ Calculate the overall average demad.

b$.$ Calculate the average demad per quarter in the space given in the above table.

c$.$ Calculate the seasonal index in the space given in the above table.

d$.$ Develop a linear trend line $($simple linear regression line$)$ forecast for each of the four seasons season for year $6.$

$($Create a separate table as we did in the Chapter $15$ Assessment, then find the intercept and the slope of the trend line.$)$

Intercept

Time $($Slope$)$

Forecast using trend $($only$)$

e$.$ Draw a time$-$series plot with original data and the trend line.

f$.$ Calculate he Mean Squared Error $($MSE$)$ for the trend$-$line$-$only forca MSE

g$.$ Projection for quarters $1$ through $4$ of year $6$ using trend and seasonal index.