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The following table presents quarterly seasonal indexes for the number of new automobiles sold by a car dealership in London Ontario. Spring Summer Fall Winter

  1. The following table presents quarterly seasonal indexes for the number of new automobiles sold by a car dealership in London Ontario.

Spring

Summer

Fall

Winter

1.15

0.80

1.10

0.95

  1. Comment on the seasonal indexes in relation to automobile sales. (3 marks)

  1. From the original historical data (2002 2006) a trend line of TRt = 250 + 6t, where t = 1 to 20, was calculated. Assuming a multiplicative seasonal model forecast the number of new automobiles expected to be purchased in the year 2007, by quarter. (5 marks)

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