4. Zeus Computer Chips Inc. used to have major contracts to produce the 2nd generation computer chips. The market has been declining during the past 3 years because of the new third-generation chips, which it cannot produce, so Zeus has the unpleasant task of forecasting next year.

The task is unpleasant because the firm has not been able to find replacement chips for its product lines. Here is demand over the past 12 quarters:

Use a multiplicative seasonal factor (Figure 4.7) to forecast the four quarters of Year 4.

Transcribed Image Text:

Year 1 Year 2 Year I 4,800 I 3,500 3,200 3,500 || 2,700 III 4,300 3,500 || III 2,100 2,700 IV 3,000 IV 2,400 IV 1,700