The trend line $\hat { y }$ = 0.70 + 0.005t was calculated from quarterly data for 2011-2015,where t = 1 for the first quarter of 2011.The seasonal indexes computed from the trend line for the four quarters of the year 2016 were .85,1.05,1.15,and .80,respectively.The seasonalized forecast for the third quarter of the year 2016 is:
A) 0.937
B) 0.820
C) 0.815
D) 0.943

Question

Quizplus · Accepted Answer

To find the seasonalized forecast for the third quarter of 2016, first calculate the trend value for that quarter. Since t = 1 for Q1 2011, t = 23 for Q3 2016. The trend value is $\hat{y} = 0.70 + 0.005 \times 23 = 0.815$. Multiply this by the seasonal index for Q3, which is 1.15: $0.815 \times 1.15 = 0.937$.

The Trend Line y^\hat { y }y^​ = 070 + 0005t Was Calculated from Quarterly Data for 2011-2015,where T =

The Trend Line $\hat { y }$ = 070 + 0005t Was Calculated from Quarterly Data for 2011-2015,where T =