Managerial Economics 13th Edition by James McGuigan,Charles Moyer,Frederick Harris

Exercise 15

Savings-Mart (a chain of discount department stores) sells patio and lawn furniture. Sales are seasonal, with higher sales during the spring and summer quarters and lower sales during the fall and winter quarters. The company developed the following quarterly sales forecasting model:
t = 8.25 + 0.125t 2.75D1t + 0.25D2t + 3.50D3t
where t = predicted sales ($million) in quarter t
8:25 = quarterly sales ($million) when t = 0
t = time period (quarter) where the fourth quarter of 2002 = 0, first quarter of 2003 = 1, second quarter of 2003 = 2,...

Forecast Savings-Mart's sales of patio and lawn furniture for each quarter of 2010.