The following trend line was calculated from quarterly data for 2006-2010: ŷ = 2.35 + 0.12t, where t = 1 for the first quarter of 2006. The seasonal indexes computed from the trend line for the four quarters of the year 2011 are 0.88, 0.93, 1.04, and 1.17, respectively. The seasonalised forecast for the third quarter of the year 2011 is:
A)5.314.
B)6.119.
C)4.286.
D)4.641.

Question

Quizplus · Accepted Answer

The seasonalized forecast for the third quarter of the year 2011 is:ŷ = 2.35 + 0.12t + 1.04= 2.35 + 0.12(12) + 1.04= 5.314

The Following Trend Line Was Calculated from Quarterly Data for 2006-2010