Question
The following table shows the deseasonalized sales of new cars made by DT Dobie in the years 2018 to 2020 . 2018 2019 2020 Q1
The following table shows the deseasonalized sales of new cars made by DT Dobie in the years 2018 to 2020 . 2018 2019 2020
Q1 (Sh.m) 68.1 67.3 73.4
Q2 71.1 61.3 77.3
Q3 67.2 57.8 86.1
Q4 64.6 67.6 77.2
The director of marketing has availed information with respect to the seasonal indices that were used to generate the above sales data as follows;
2018 2019 2020
Q1 0.81 0.76 0.81
Q2 1.13 1.06 1.08
Q3 0.90 1.00 0.91
Q4 1.15 1.18 1.21
Multiplicative seasonal indices were used in the above analysis.
Required:
i. Calculate seasonal indices for the year 2019
ii. Determine actual sales data for the years 2018 to 2020
iii. Generate the OLS parameters from the actual sales data in (ii) above and estimate sales that would be made in quarter 3 of the year 2021.
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