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A company uses a multiplicative time series model to forecast sales. The trend in sales is linear and is described by the following equation:
Trend = 400 + 10 TWhere T = 1 denotes the first quarter of 2010, T = 2 denotes the second quarter of 2010 etc.
The average seasonal variations are as followsQuarter 1 2 3 4
%Variation -30 +40 +10 -20What is the sales forecast for the third quarter of 2011?
see its simple… t=1 2010 1/4 a yr has 4 quarters so 3rd quarter of 2011 is probably t=7
Trend= 400+10T
trend = 400+(10*7)
trend = 470470’z 10% = 47
470+47=517Hope its correct
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