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Welder Plus used to have major contracts to produce the Megatron dual chips. The production of dual chips has been declining for the last three

Welder Plus used to have major contracts to produce the Megatron dual chips. The production of dual chips has been declining for the last three years which has contributed to the challenges of forecasting because Welder Plus has not been able to find replacement chips for its product lines. Below is the demand for the past 12 quarters:

2020

2021

2022

Q1

4800

Q1

3500

Q1

3200

Q2

3500

Q2

2700

Q2

2100

Q3

4300

Q3

3500

Q3

2700

Q4

3000

Q4

2400

Q4

1700

Use regression and seasonal indexes (i.e. decomposition technique with linear regression) to forecast demand for the next four quarters for the year 2023. (10 points)

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