While searching through your class notes, you stumble across the following forecasting model: Demand = (35,000 + 4.8 * period) seasonal index
SEASONAL INDICES
Summer ............ 1.25
Fall............ 0.90
Winter............ 0.75
Spring............ 0.90
Based only on this information, answer the following true false questions. Justify your answers.
a. True or false? The forecast model is a time series model.
b. True or false? The forecast model suggests that the variable being forecasted is experiencing an upward trend in demand.
c. True or false? The variable being forecasted experiences a sharp increase during the summer months, followed by lower levels in the winter months.